Exploring Everclear: The First Clearing Layer
In the rapidly evolving landscape of Decentralised Finance (DeFi), innovation and adaptability are essential for success. Among the notable players in this dynamic field is Everclear, formerly known as Connext. Everclear has emerged as a trailblazer, introducing groundbreaking solutions that promise to reshape the DeFi ecosystem. This article delves into the essence of Everclear, the xERC20 standard, and the strategic moves that have propelled it to the forefront of the industry.
What is Everclear?
Everclear, rebranded from Connext, is a modular protocol designed to securely transfer funds and data between various blockchains. This rebranding effort underscores Everclear’s commitment to addressing liquidity fragmentation across modular blockchains by introducing the first Clearing Layer for Web3. This Clearing Layer aims to coordinate global liquidity settlement between chains, thus addressing the pervasive issue of fragmented liquidity in the DeFi space.(GlobeNewswire) (Binance).
How Connext (Everclear) Works
The Everclear architecture is a sophisticated system designed to handle and settle cross-chain transactions efficiently. Here is an overview of its operation, highlighting the key components and processes:
Everclear uses a combination of on-chain contracts and off-chain agents to manage cross-chain transactions. It operates using three types of messages: Intent, Fill, and Settlement. Intents are created when a user initiates a transaction, while Fills are generated when a solver fulfils that transaction. These messages are periodically dispatched across chains via a transport layer, and settlements occur when both Intent and Fill messages are received on the clearing chain, leading to the solver being compensated. Funds are initially debited from the transaction initiator and held in a Spoke contract, where solvers deposit to fulfil intents. This allows for a decoupled settlement process that can occur on any solver-configured domain, enabling a global settlement flow.
The system comprises several components, including the Hub, Spoke, and Gateway contracts, which handle message formatting and dispatching. Agents such as Relayers, Cartographers, and Routers manage network transactions and provide a cross-chain view of network states. The transport layer utilises Hyperlane to ensure reliable message transport, making Everclear a robust solution for cross-chain transaction management.
Why Do We Need xApps?
Blockchains do not scale to the level of volume needed for mainstream adoption. Ethereum and other programmable blockchains solve this problem by distributing users, funds, and data across multiple parallel domains, such as sidechains and rollups. However, this creates a fragmented user experience. xApps abstract this multichain experience, allowing users to interact with applications without needing to understand or manage the underlying blockchain infrastructure.(What is Connext? | Technical Docs).
The xERC20 Standard
Central to Everclear’s innovative approach is the xERC20 standard, an open cross-chain token standard (EIP-7281) that extends ERC-20 to address issues like token sovereignty, fungibility, and security faced by bridged tokens today. xERC20 introduces a burn/mint interface, a whitelist for bridges, and rate limits for each bridge. This results in tokens that can be transferred between chains with zero slippage, without requiring issuers to bootstrap liquidity for bridging, maintaining a single token version per chain, and offering enhanced security controls. As an open token standard, xERC20 ensures that token issuers are not locked into working with a single vendor or bridge .(Connect Network) (xERC20).
Chain Connectivity
Everclear’s expansive network connects to numerous blockchain ecosystems, including Ethereum, Binance Smart Chain, Polygon, and Avalanche, among others. This extensive connectivity enhances its appeal, providing users with unparalleled access to diverse DeFi opportunities.(Binance) (TechBullion) (Connext Network).
Conclusion
Everclear stands at the forefront of innovation in the DeFi landscape, offering groundbreaking solutions to the challenges of liquidity fragmentation and cross-chain transactions. By rebranding from Connext and introducing the first Clearing Layer for Web3, Everclear is poised to redefine how decentralized networks interact and settle transactions. The implementation of the xERC20 standard and the extensive chain connectivity underscores Everclear’s commitment to security, efficiency, and user-friendly experiences. As the DeFi ecosystem continues to grow, Everclear’s pioneering approach and strategic advancements position it as a key player in facilitating a seamless, interconnected blockchain future.
