In recent years, mass adoption and enhanced interoperability have been at the forefront of most blockchain projects. Different projects have been born to solve issues like complex transactions and cross-chain communications.

One of those protocols is Everclear, built to simplify cross-chain transactions through its intent-based architecture. This article will explain Everclear’s purpose, how it works, and its unique features.

What is Everclear?

Source: Official website

Everclear, formerly known as Connext, is a protocol built to simplify complex cross-chain transactions. It fosters easier and faster transfer of data and assets between different networks regardless of the blockchain they were built on. An intent-based transaction system allows users to focus on the goal of their transactions without dealing with the transaction’s technicalities.

Intent-based transactions differ from regular transactions, which require the user to decide the complex processes they wish to take to complete their transactions, like what bridge to use, what chain to use, and the gas fee needed for interchain transactions. Meanwhile, with intent-based transactions, the user can simply outsource those complexities to solvers or refillers, enabling fast, cheap, and generalized transactions across chains.

The protocol also uses a clearing layer that allows users to present their intent to service providers, solvers, or fillers, who help execute these transactions at the most competitive rates. These solvers execute the transaction and handle the technical aspects of transactions, lifting the burden off the user.

These solvers compete against one another in an auction to decide who executes the transaction at the lowest price possible. The solvers are compensated once the transaction is completed and the user’s intent has been settled.

History of Everclear

Everclear is a pivot project from the Connext network. It was developed to enable the interoperability of protocols through safe and secure cross-chain communication. The Connext protocol quickly gained success and became popular among Web3 enthusiasts worldwide. However, the growth of the Web3 ecosystem exposed major issues that plagued the Connext protocol.

Some of these issues included the increased number of blockchain networks, which led to Connext’s user experience slowing down and becoming more complex and expensive. This ultimately led Connext to seek a solution that enhanced the project’s scalability.

The Connext team eventually pivoted, introducing Everclear as a more modular and scalable protocol. The Everclear network was officially released as a testnet in June 2024, taking the project a step forward by enhancing interoperability and tackling issues like liquidity fragmentation.

The protocol mainnet was officially launched on September 18, 2024, and has since partnered with several networks, such as Socket, Particle Network, and Router.

Everclear Mainnet

Source: official site

Everclear has launched its mainnet beta to create a more scalable and seamless cross-chain interaction between the ecosystem’s networks. It was built as an Arbitrum Orbit rollup, using Hyperlane and Eigenlayer AVS to enable the global liquidity settlement between chains. By doing so, the protocol can reduce rebalancing costs for solvers, intent-based bridges, and other users in the ecosystem.

A major component of the Everclear Mainnet is Chain Abstraction. Everclear aims to create an ecosystem where users no longer have to worry about the chain they wish to use. The focus shifts from intricate details to only the intents at the core of the user’s mind.

Meanwhile, the solvers take the stage by anticipating the liquidity needs across the different networks and handling complex steps like interacting with several chains, protocols, and other instructions.

Features of Everclear Mainnet

The Everclear mainnet was released with special features like:

Clearing Layer

The Everclear mainnet introduces a decentralized clearing layer design to enhance liquidity settlement across chains and automate rebalancing. This eradicates the need for solvers, market makers, and exchanges to manage the flow of liquidity. Rather than dealing with it manually, the flow of liquidity can be left to Everclear’s system, which will find the optimal path for the transaction and settle it, leading to a cut in the price and technicality of the transaction. This development places Everclear at the forefront of liquidity management.

Dutch Auction Mechanism

Everclear designed this mechanism to provide extra incentives to arbitrageurs to settle invoices. As the auction progresses, the price of the invoice continues to reduce until the arbitrageurs can profit from purchasing it, ensuring the flow of liquidity. Additionally, the use of predictable pricing ensures greater participation by eliminating uncertainty.

Market of Arbitrageurs

To create a more robust system, Everclear has partnered with popular market makers, ensuring that there is always a pool of arbitrageurs to enable invoice clearance and maintain healthy liquidity flows across chains. Projects like Anera, Tokka, Dialectic, and Aori are already functioning in the system.

Transportation and Security

With Everclear, user intents are transported using the Hyperlane protocol, while the Eigenlayer AVS controls security. Combining these two creates a secure and efficient relay of cross-chain messages amongst different networks.

vbNEXT

vbNEXT is a model proposed and approved by the protocol DAO that introduces a vote-bonded mechanism created to manage the flow of liquidity to its most optimal path. By doing this, the system can incentivize healthy liquidity flows and correct most of the mistakes found in traditional locking mechanisms like veTokens.

Additionally, the vbNEXT token allows users to stake NEXT tokens to gain fees raised by the token. This is a way for the protocol to create constant demand for the token. Also, vbNEXT is used for liquidity allocation. It guides liquidity towards underutilized chains or pathways, preventing liquidity from being trapped in chains with lower demands.

How Does Everclear Work?

Everclear’s main goal is simplifying cross-chain transactions through chain abstractions and modularity. It achieves this by allowing users to dictate the outcome of their transactions without handling the intricate details needed to execute the transactions. To achieve its goal, Everclear makes use of the following components:

Intent-based Architecture

Intent-based Architecture is at the heart of the Everclear protocol. It allows users to outsource the complex transactions to service providers, who in turn handle pathfinding, bridging, switching chains, and paying gas fees for interchain transactions on behalf of the user.

Through Intent-based architecture, the user can complete transactions on their selected chain at the best price possible. To accomplish this, there are three major steps involved:

• Intent Expression: This process involves the user expressing his intention to carry out a transaction on a different blockchain and his ability to pay the fees needed to execute the transaction. Service providers like routers, solvers, and fillers monitor and track these intentions.
• Intent Execution: This stage involves the service providers bidding to execute the user’s intent at the best price possible. The provider with the best price wins and gets to process the transaction on behalf of the user on their desired blockchain.
• Intent Settlement:

Once the transaction is completed, the protocol reimburses the winning provider for the capital they used to fulfill the user’s intent.

Chain Abstraction

Chain Abstraction combines standardized protocols, middleware services, intents-based transactions, and automated rebalancing. The protocol uses standardized protocols to enable constant communication with different blockchains, and middleware services ensure an organized user interface.

Modularity

Everclear utilizes a modular architecture, dividing the protocol’s functions into separate layers. This allows the protocol to concentrate on clearing and netting processes while delegating other important aspects to specialized infrastructures.

The Modular architecture enhances scalability, flexibility, and ease of integration with new blockchain networks. The Modular architecture is broken down into the following layers:

• Intent Layer: This layer refers to the systems built on smart contracts within each supported blockchain. These smart contracts allow users to communicate their intentions to solvers or fillers, who compete to fulfill the intention at the best price. This competitive execution model helps to ensure cost-effectiveness and efficiency in implementing user intents across the blockchain network.
• Clearing Layer: Everclear’s clearing layer controls settlements and liquidity. On the clearing layer, rather than settling every transaction on the associated blockchain, Everclear accumulates and nets off outstanding credits, reducing the frequency of settlements and rebalancing service providers.
• Consensus Layer: This layer verifies the message’s authenticity. Everclear protocol utilizes a consensus layer such as EigenLayer, enabling native and liquid stakers of ETH to provide economic guarantees to third-party systems.
• Transport Layer: This layer is in charge of delivering messages from one blockchain to another. The protocol uses Hyperlane as the main transport protocol; however, its modular design allows it to integrate with other transport protocols, such as IBC (Inter-Blockchain Communication).

How Does Everclear Solve Liquidity Fragmentation?

Liquidity fragmentation is an issue that has arisen in the Web3 space due to the increasing number of L1 and L2 blockchain networks. It is caused by the distribution of available liquidity across multiple platforms, leading to less seamless transaction execution when operating with different chains.

This issue is mainly caused by the lack of interoperability between most blockchains, which makes it difficult for them to communicate and transfer assets between one another. This lack of interoperability leads to a lack of pooled funds, which limits the flow of funds, ultimately reducing market efficiency.

Everclear’s ultimate goal is to foster interoperability, and it has developed the means necessary to address this issue. It facilitates the smooth transfer of data and assets among different blockchains. This is achieved through socializing rebalancing and netted-off settlements.

The Everclear platform spreads the expenses of rebalancing liquidity among all parties instead of requiring a particular user to bear the full cost. It also uses a netting mechanism to aggregate transactions in bulk, reduce transaction costs, and improve efficiency.

Features of Everclear

The Everclear protocol is made up of certain features that ensure the smooth running of the protocol’s services, some of which include:

Intent-based Transactions

This feature allows users to express their intent without worrying about the intricate details of the transactions, such as pathfinding, bridging, and gas fee payments.

Cross-chain Liquidity Provision

Everclear addresses the issue of fragmented liquidity across multiple blockchains by allowing dApps and users to benefit from aggregated liquidity. This eliminates the need for fragmented pools on the different chains, increasing the user’s access to liquidity at a cheaper price.

Security and Consensus

Everclear uses the EigenLayer protocol to provide consensus and security for transactions. By leveraging native and liquid stakes of ETH, EigienLayer ensures the safe and trustless validation of transactions.

Message Transportation

The transport layer in Everclear is in charge of moving messages and data between different chains. Currently, the protocol uses Hyperlane as its primary transport protocol, but due to its flexible architecture, it can also integrate with other systems.

What Makes Everclear Unique?

Everclear’s unique approach to solving interoperability combines cutting-edge technology and systems, making it stand out from other protocols. Some of these features include:

Decentralized Auction System

Everclear uses an auction mechanism where service providers called Solvers or Fillers bid against one another to execute the user’s intent. This creates a competitive environment that ensures the user receives the best transaction price.

Automated Rebalancing and Netted Settlements

With automated rebalancing and netted settlements, the system automatically balances liquidity across different chains, reducing the need for users or service providers to make manual adjustments.

Programmable Intents

Everclear allows users to perform more than just simple asset transfers. It enables programmable intents, which allow users to ass custom conditions to their transactions. This feature allows users to specify their transaction requirements.

News On Everclear

Everclear’s mainnet was officially launched on September 18, 2024. The protocol entered its beta phase to optimize operations and enhance user experience. After its launch, the protocol partnered with Renzo, a liquid staking provider, and has already accrued over $1 billion in additional Total Value Locked (TVL). This was due to the introduction of Everclear’s unique features that allow users to restake ETH derivatives on other chains without sending the assets back to Ethereum.

Conclusion

Everclear enables users to execute transactions with little effort or involvement with technicalities. The protocol simplifies cross-chain transactions by solving liquidity fragmentation and allows users to focus on less time-consuming tasks. These innovative solutions have placed Everclear at the forefront of promoting interoperability among different blockchains, making it stand out among its peers.