We 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. Let’s get into more detail as we further introduce you to the Cashmere Labs.

Single-sided Stableswap

Cashmere Labs uses Single-Side AMM for stableswap. Single-side AMM allows stablecoins to be swapped with very low slippages. The system uses the Compensation Ratio system for this, LP logic not the case for that. Additionally, with the assistance of the Cashmere Labs, stableswap transactions can be carried out with the least amount of slippage and without the need for a bridge across networks. This accelerates and simplifies the user’s movement between Layer2 networks. Very high-volume transactions can be made with Single-Side AMM. You can receive positive slippage if you switch from a pool with a low compensation ratio to a pool with a high compensation ratio.In this way, financial players had earned an arbitrage opportunity and it helps to secure the spot of equilibrium.

Single-sided yield farming

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.

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.

The system uses the interest rate model to balance the compensation ratios. The how is, by giving more APR to products with high compensation ratio, it encourages users to leave the product with low compensation ratio in their hands and switch to products with higher compensation ratio instead. In this way, during the swap process, the liability amount of the product with low compensation ratio decreases and the compensation ratio increases.

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.

Cashmere Dao system

Cashmere Dao owns the revenues generated by the Cashmere Labs. In addition, DAO has the right to interfere and organize the distribution of incomes and the decisions of the labs. To make this income distribution a set of mechanisms are used through the way. Cashmere Labs generates revenue from stableswap transactions, cross-chain aggregator transactions, and a few other processes. It also provides emission rewards for incentives to liquidity providers and voting right holders for governance. With that way, users play an active role both in determining the emissions of the pools and in the distribution of trading fees.

1. Voting Escrow System

Cashmere DAO members get their voting rights based on the amount of $CSM they lock on a time basis. veCSM is the Cashmere voting escrow token. The more veCSM users have, the more pool share rights in the DAO will increase in direct proportion. Trading fees are distributed on a weekly basis to CSM holders based on the pool share ratio.

2. Gauge Controller

Cashmere DAO members also maintain emission control. Users can vote on emission rates on a weekly basis and increase their own income and have a greater say in the governance of the Cashmere treasury. Existence of Cashmere’s DAO gauge and lock system, assures to provide a completely decentralized and fair reward distribution.

Real Value System

Cashmere Labs aims at a system based on a generation of real value. It does not only encourage its users to the system by having an inflationary structure, but it also uses its inflationary structure to distribute its income in a fair and decentralized way and uses its product as more than a reward mechanism. With the increase in the amount of liquidity on the system, the system can easily become capable of generating high income. In addition, by the agency of the Crosschain aggregator, it can generate a high amount of income when users switch between networks and Cashmere can distribute it to its users.

On the strength of this power, Cashmere Dao increases the demand for its own token and can satisfy its user despite its issuance surplus. The token system is utilized for as many users as possible to participate in the labs management and the incentives to liquidity providers increase. In this way, the system makes itself sustainable.

The number of DEX users and trading volumes have grown tremendously over the past 2 years, but it’s still too early. In addition, with the adoption of L2 systems by users, the exchange volumes of L2 networks are increasing and creating a big cake. From this perspective, Cashmere Labs will act as a bridge in this battle between L2s and L1s with its solutions to problems.

Future of Cashmere Labs

Cashmere Labs will become a labs that connects all Layer2 and Layer1 in the future, allowing users to execute all their operations with a single application. This labs will ensure the smooth flow of all DEXes and liquidities in the future and provide its users with a bridgeless experience. Stay tuned!

We 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. Let’s get into more detail as we further introduce you to the Cashmere Labs.

Single-sided Stableswap

Cashmere Labs uses Single-Side AMM for stableswap. Single-side AMM allows stablecoins to be swapped with very low slippages. The system uses the Compensation Ratio system for this, LP logic not the case for that. Additionally, with the assistance of the Cashmere Labs, stableswap transactions can be carried out with the least amount of slippage and without the need for a bridge across networks. This accelerates and simplifies the user’s movement between Layer2 networks. Very high-volume transactions can be made with Single-Side AMM. You can receive positive slippage if you switch from a pool with a low compensation ratio to a pool with a high compensation ratio.In this way, financial players had earned an arbitrage opportunity and it helps to secure the spot of equilibrium.

Single-sided yield farming

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.

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.

The system uses the interest rate model to balance the compensation ratios. The how is, by giving more APR to products with high compensation ratio, it encourages users to leave the product with low compensation ratio in their hands and switch to products with higher compensation ratio instead. In this way, during the swap process, the liability amount of the product with low compensation ratio decreases and the compensation ratio increases.

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.

Cashmere Dao system

Cashmere Dao owns the revenues generated by the Cashmere Labs. In addition, DAO has the right to interfere and organize the distribution of incomes and the decisions of the labs. To make this income distribution a set of mechanisms are used through the way. Cashmere Labs generates revenue from stableswap transactions, cross-chain aggregator transactions, and a few other processes. It also provides emission rewards for incentives to liquidity providers and voting right holders for governance. With that way, users play an active role both in determining the emissions of the pools and in the distribution of trading fees.

1. Voting Escrow System

Cashmere DAO members get their voting rights based on the amount of $CSM they lock on a time basis. veCSM is the Cashmere voting escrow token. The more veCSM users have, the more pool share rights in the DAO will increase in direct proportion. Trading fees are distributed on a weekly basis to CSM holders based on the pool share ratio.

2. Gauge Controller

Cashmere DAO members also maintain emission control. Users can vote on emission rates on a weekly basis and increase their own income and have a greater say in the governance of the Cashmere treasury. Existence of Cashmere’s DAO gauge and lock system, assures to provide a completely decentralized and fair reward distribution.

Real Value System

Cashmere Labs aims at a system based on a generation of real value. It does not only encourage its users to the system by having an inflationary structure, but it also uses its inflationary structure to distribute its income in a fair and decentralized way and uses its product as more than a reward mechanism. With the increase in the amount of liquidity on the system, the system can easily become capable of generating high income. In addition, by the agency of the Crosschain aggregator, it can generate a high amount of income when users switch between networks and Cashmere can distribute it to its users.

On the strength of this power, Cashmere Dao increases the demand for its own token and can satisfy its user despite its issuance surplus. The token system is utilized for as many users as possible to participate in the labs management and the incentives to liquidity providers increase. In this way, the system makes itself sustainable.

The number of DEX users and trading volumes have grown tremendously over the past 2 years, but it’s still too early. In addition, with the adoption of L2 systems by users, the exchange volumes of L2 networks are increasing and creating a big cake. From this perspective, Cashmere Labs will act as a bridge in this battle between L2s and L1s with its solutions to problems.

Future of Cashmere Labs

Cashmere Labs will become a labs that connects all Layer2 and Layer1 in the future, allowing users to execute all their operations with a single application. This labs will ensure the smooth flow of all DEXes and liquidities in the future and provide its users with a bridgeless experience. Stay tuned!