This layer is designed to unify liquidity across various blockchain networks, including Cosmos, Solana, and EVM-based networks, by using virtual pools built on Nibiru Chain. The company has raised USD 600,000 in a pre-seed funding round led by tech investment firm Kahuna Network and angel investor Tomoaki Sato, with participation from other investors associated with Lavender Five, Andromeda, Nibiru Chain, and more. Additionally, Euclid received a grant and liquidity support to bootstrap liquidity in its pools.
The funding will be allocated towards the development of the architecture and project, as well as for business development, audits, and marketing. Officials from Euclid stated that the Unified Liquidity Layer aims to provide users with a chain-agnostic modular experience, focusing on scalability and fostering an efficient market environment.
According to the official press release, the blockchain ecosystem has witnessed significant growth with the launch of over 10 new Layer-1 chains in the past year alone. However, the proliferation of DeFi apps has led to fragmented liquidity across different chains, impacting user experience.
Euclid addresses this challenge by leveraging the Virtual Liquidity Pool (VLP) model to unify liquidity virtually across integrated chains, without the need for migration. This model allows users and developers to track liquidity across all Euclid-integrated chains and move it seamlessly when needed.
The Virtual Settlement Layer (Nibiru) serves as a single source-of-truth ledger that all Euclid-integrated blockchains can connect to, offering low slippage and fair prices across the ecosystem. The framework is based on Euclid's LiquiSync model, enabling easy access to any chain or protocol.
By unifying liquidity, Euclid aims to eliminate single points of failure and increase decentralisation, ensuring liquidity remains distributed across the blockchain. This creates a decentralised pool on Nibiru for any asset pair deposited into Euclid pools across integrated blockchains.
Euclid plans to extend its unified liquidity layer beyond the Cosmos ecosystem to include both EVM and non-EVM chains, using protocols such as Inter-Blockchain Communication Protocol (IBC), CCTP, Axelar, and Euclid’s own messaging protocol.
The Liquidity Layer framework will be supported by $EUCL, the native governance revenue share token, allowing holders to stake it for revenue from protocol fees and participate in governance and the protocol's treasury. Initially, $EUCL holders will vote on incentives, liquidity infusions, and protocol fees, with future initiatives being funded and directed by holders.
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