Many protocols in the cryptocurrency industry adopt intent-driven designs. Instead of directly submitting a transaction containing the entire methodology of “how” a task should be executed, users can express “what” their desired outcome should be.
This improves the user experience through chain abstraction and market efficiency because users can simply declare their desired outcome while outsourcing the logic to achieve it to sophisticated actors. Notable examples of intent-based protocols include swap aggregators (e.g. limit orders) Cowswap and UniswapX) and cross-chain liquidity bridges.
Intent-Driven Design
Connext, now rebranded as Everclear, has adopted the intention of facilitating cross-chain token exchanges. Instead of going through complex processes such as finding directions, bridging, or paying gas fees, users simply pay the fee. fixer We handle these tasks for them.
For a brief overview of Connext’s intent-driven design, see: This research work.
As depicted in Figure 1, in an intent-driven framework, when a user expresses an intent to perform a cross-chain exchange, the Connext solver is incentivized by a fee paid by the user to monitor this intent. Solvers compete in auctions to execute these swaps at the most competitive prices.
The winning solver prioritizes liquidity and releases funds to users on the target chain. Once the funds are settled on the destination chain, the solver unlocks redemption on the source chain.
Figure 1. Schematic of how Connext handles cross-chain swaps.
In this framework, users can perform cross-chain swaps at the most competitive market prices that the solver network can offer. Nevertheless, this mechanism assumes that the solver is always effective at run time, which may not always be a valid assumption.
As cryptocurrency activity becomes multi-chain and multi-asset, resolvers must support an increasing number of chains and tokens to keep up, which requires them to deploy more capital to remain competitive. Increasing capital requirements increase barriers to entry and hinder decentralization of solver networks.
On the other hand, if there is a large net flow in cross-chain transfers (e.g. Ethereum to Arbitrum), the solver’s stock will gradually flow from the chain with the most demand (Arbitrum) to the chain with the least demand (Ethereum). This phenomenon depletes the solver’s immediate liquidity, requiring the solver to rebalance liquidity across chains.
Liquidity rebalancing is not frictionless as it often requires integration with various liquidity venues (e.g. centralized exchanges). Such infrastructure can be expensive to maintain and operate, and will become increasingly so as more blockchains and assets are incorporated into bridging protocols.
Rebalancing costs can be amortized by maintaining large inventories across multiple chains to balance two-way flows and reduce rebalancing frequency. However, this is only possible for the largest solvers with a lot of capital, which leads to an oligopoly in the solver market, which goes against the spirit of decentralization.
Clearing layer from Everclear
Everclear is Ethereum Layer 2 (L2) that allows resolvers to complete consensus for other resolvers and users.
Rather than settling every cross-chain transfer on a connected blockchain, Everclear provides a universal platform where resolvers can accumulate and offset outstanding credits, as shown in Figure 2. This reduces the frequency of settlements and rebalancing. For reference, more than 80% of cross-chain transfers in a 24-hour period can be offset.
Figure 2. Example of netting.
In addition to netting, Everclear also: execution layer Implement optimal netting strategies and host decentralized applications (dApps). One example of a dApp is a lending protocol that allows solvers to borrow outstanding credit for immediate liquidity to fulfill user intent in a timely manner.
To introduce L2, you will also need: Modularization of the bridging protocol shown in Figure 3. intent layer It is deployed on all supported chains in the form of a smart contract, allowing users to declare their intentions and have solvers listen to them.
Everclear is Clear/Run Layer It is used to clear cross-chain transfers, offset outstanding balances, and execute arbitrary transaction logic.
all consensus layer This is the component that verifies the authenticity of the message. Everclear will take advantage. own layer For security purposes, EigenLayer allows ETH’s native and liquid stakers to provide economic guarantees to third-party infrastructure on an opt-in basis.
all transport layer Handles the actual message passing from one infrastructure to another. Everclear will take advantage. hyperlane At launch, it will serve as a transport layer, but the modular nature of the architecture allows for open integration with other relay infrastructures with little additional burden on protocols such as the Inter-Blockchain Communication (IBC) protocol for connecting Cosmos-based sidechains. it’s possible.
Figure 3. Conceptual visualization of Everclear modularization.
In reality, the intent layer (connected chain) communicates with the clearing layer (Everclear) through the consensus layer (EigenLayer) to ensure that the message is legitimate, while the actual transmission of the message is handled by the transport layer (Hyperlane). Figure 4.
Figure 4. Schematic of communication between layers.
The modular approach allows Everclear to focus on perfecting the execution layer tailored to its needs, such as clearing and offset, while delegating other aspects of the protocol, such as transfers and settlements, to external specialized infrastructure.
Various dApps can freely adopt this universal clearing layer in a multi-chain intent-based ecosystem. Integrating with Everclear makes it easy to secure liquidity and easily scale your product to multiple blockchains with little overhead, reducing network effort and total settlement amount required.
Metrics
Everclear’s total value locked (TVL) remained moderate, averaging $8.5 million in the first two months of 2024. Since then, Everclear’s Restake From Anywhere (RFA) initiative and renzoOne of the fastest growing liquid EigenLayer staking protocols.
For context, RFA leverages Everclear as a backend that allows staked ETH derivatives from any blockchain to be staked back to EigenLayer with a single click. This offering significantly expands Everclear’s total addressable market, leading to sustainable adoption by repeat grantees. As of this writing, Everclear’s TVL is $1.13 billion.
Figure 5. Value locked in Everclear.
Everclear’s weekly transfer volume averaged $7 million, with a significant increase in March coinciding with the aforementioned RFA launch and Renzo partnership. Trading volume peaked at $280 million in late March and has since declined as renewed interest in RFA subsides.
Most of the volume originated from Ethereum, but there was also significant activity from Arbitrum, Linea, and Mode. These trends suggest that Everclear continues to be utilized by veteran and new Ethereum L2s.
Figure 6. Everclear’s weekly transfer volume.
These observations point to the initial success of the RFA campaign. Everclear is therefore well-positioned to capture a larger share of the cross-chain infrastructure market and maximizes the efficiency of the intent-based ecosystem through the introduction of a universal clearing layer, thereby mitigating the friction caused by liquidity fragmentation across multiple environments. Chain World.
This research article first appeared on The Block Pro. Unlocked by Everclear.
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