Introducing Cluster Vaults: A New Way to Bootstrap Liquidity on Ethereum

馃敟 Mind-Blowing Liquidity Boost

By Euler
May 9, 2024, 5:36 PM
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In the upcoming v2 release, Ethereum-based lending protocol will introduce cluster vaults, a new feature that allows trades to easily bootstrap each other's liquidity.​ A cluster is a set of cross-collateral assets that can borrow from one another.​ This opens up possibilities for trades to provide liquidity to each other.​ For example, one cluster could consist of stETH, rETH, and ezETH as collateral assets, with ETH as the borrowable asset.​ Another cluster could have ETH as collateral and DAI, USDC, and USDT as borrowable assets.​ Traders seeking to amplify their LRT/LST yield can borrow ETH supplied by traders looking for leverage on ETH.​ This creates an ecosystem where one trade bootstraps the next, while giving users optionality in their risk exposure.​

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lending 馃憦 more 馃憦 capital 馃憦 efficient In v2, cluster vaults will allow trades to easily bootstrap each other's liquidity. But WTF are cluster vaults? A cluster is essentially a set of n cross-collateral assets that all have collateral factors to be able to borrow one

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