LayerZero Forum

For a deeper dive into the LayerZero ecosystem and more opportunities join our Forum.

  • Go to page

Cashmere Labs

A protocol for MEV protected cross-chain swaps

Core Concept of Cashmere

Cashmere is the cross-chain asset aggregator; stableswap platform. As well as your capabilities: Swap any asset between any chain. Cross-chain interoperability without bridging. Intrachain swaps. Deepest liquidity; Low slippage.

  • Cashmere can swap any asset to any chain without bridging asset.

  • Cashmere uses cross-chain interoperability messaging service.

  • The stablecoin liquidity pools in the Cashmere router are single-sided.

  • Cashmere is the unique application that has cross-chain stableswap and asset aggregator in one application at the same time.

  • Stableswap uses Cashmere's own liquidity directly and becomes a Layer1; Layer2 solution.

  • On the other hand, the aggregator uses all DEX liquidity pools in all networks and offers the lowest slippage to the user

Cashmere have just at the beginning of the road for De-Fi. Just think about it, TVL in the De-Fi corresponds to 1/35 of JPMorgan’s assets. The market has had an incredible growth rate for the last 2 years. Every day, a new player joins the market, and the competition grows stronger. As the number of conscious users increases, the technology and quality offered by the projects become more important. Users no longer must transact on a single network but instead, have various assets on various networks to make investments. It’s thought that one of the most important processes for the De-Fi in the future is Layer2 and the Crosschain mechanism will be the gamechanger; which means it’s going to be the mainstream itself. The Cashmere Labs offers solutions to these problems users face.

Most stable exchanges are like USDC-DAI, USDC-USDT, USDC-MIM, etc., based on coin pairs with different liquidity pools. USDC is available in the three-coin pairs mentioned above. However, USDC is not shared between liquidity pools. This lies behind to the decrease of swap efficiency. Additionally, users may have a shortage of liquidity in the LP system and will experience a certain amount of slippage when creating an LP, like Curve 3 pool. That’s why Cashmere Labs encourages its users to single side yield farming. With that, shortage liquidity will be eliminated, and users will not incur any loss while providing liquidity.

Single-sided yield farming

There are two main pools in the Cashmere Labs; the base pool and the boosted pool. Users get their base pool rewards according to the liquidity amount they invest in LPs and get their boosted pool rewards based on their voting power. As a consequence of the Cashmere Labs cross-chain system, in L2 and L1 networks, users have the ability to add liquidity to their stablecoins on their native network. And it protects its users from shock situations such as de-peg. Following to that, the labs, specifically on the L2 network, offers a solution to the stablecoin liquidity problem.

Cross-chain Aggregator

The Cashmere Labs also allows the exchange of non-pegged assets. It does not use a bridge when switching non-pegged assets like BTC, ETH, and AVAX between L2s and L1s. The Omnichain Interoperability labs is being used by the router. The single side additionally makes use of its own stable pools while using this technique. When the user swaps the X product that is in Chain (a) to the Y product that is in Chain (b), the labs uses the 1-inch aggregator and passes over the liquidity of the cashmere labs. Owing to this, before making a bridge, the user acquires a Y native asset that is in Chain (b). The exchange of assets will take place separately for each chain. Users will only be given information on the amount of withdraw-able assets from the stable LP between chains. As a result, MEV bots cannot attack between chains during the messaging period. In fact, the Cashmere Labs, with this solution, provides a solution to early liquidity starvation, particularly in L2s.

Powering the bridgeless stableswap asset aggregator across 7 high value chains with just one integration.

Other LayerZero Project