Intents

Intents are simple to explain but hard to implement.

Everclear, a cross-chain clearing and settlement layer that plays a vital role in addressing some of the significant challenges plaguing intents, has been making waves recently.

Challenge 1

Balancing funds across blockchains is one of the key functions that solvers perform in an intents-based infrastructure.

Solvers are entities that break down user intents into individual transactions and facilitate the execution of these transactions in the most efficient way possible. It is the job of these solvers to find the best possible route for an intent transaction and ensure that appropriate funds are available in their wallets across multiple chains to perform these transactions.

Needless to say, with so many blockchains in existence today, managing funds, also known as rebalancing, across them is not easy.

The same is true for bridges. Bridges must constantly rebalance their liquidity pool across multiple chains, just like solvers.

Everclear sits between the solver/bridges and the various settlement chains, maintaining a unified picture of inflows and outflows across these chains. This allows it to perform “netting” of transactions, which ultimately results in reducing the number of times solvers and bridges have to rebalance, effectively saving them time and money.

Challenge 2

The second challenge is that solving is a highly competitive ecosystem. We already know from CowSwap that only a handful of top solvers are profitable from the 20+ solvers working for CowSwap.

By reducing the extra burden of frequent rebalancing from solvers, Everclear helps maintain their competitiveness. The programmability built into the Everclear protocol also allows solvers to have their customised solving strategies, allowing them better control over their profits and expenses.

Challenge 3

The third and perhaps the biggest challenge is that of liquidity fragmentation. We all know that chains and their ecosystems work in silos, with bridges operating between them, allowing funds to move across them.

Everclear is in a unique position to have a consolidated view of liquidity across multiple blockchains, which can be used to provide a shared liquidity pool for all of DeFi.

Recently, Hyperlane announced a new version of its Hyperlane Warp Route 2.0, which features an inbuilt rebalancer that utilises Everclear to create a unified and rebalanced liquidity pool that dApps can utilise, making cross-chain dApp interaction seamless and effectively addressing the issue of fragmentation.

All this sounds great, but are dApps and solvers using Everclear?

Yes! Everclear clearing and settlement service crossed the $1 billion mark in total volume in less than one year. It has seen a steady increase in its volume across chains, a clear indication of increased adoption.

Everclear is also the most cost effective way to send ETH/WETH or stablecoins across different chains compared to traditional bridges.

The NEAR Protocol recent investment in Everclear is another indication of its success. The investment will enhance liquidity within Everclear, preparing it for increased adoption.

Everclear has clearly positioned itself well. Its strategic pivot from starting as an L2 (Connext) to realising and working towards addressing the biggest challenge of liquidity and user fragmentation has been a master stroke. With its unique clearing and settlement protocol, now backed by the powerhouse Near Protocol, it is poised for continued growth in the coming years.

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All information here is for educational purposes and the projects/tokens mentioned are not any form of endorsement.