Arcana Network: Unifying Liquidity and Users in DeFi
Arcana Network is a Layer 1 protocol designed to enhance the use of decentralized applications (dApps) through a technology called Chain Abstraction. The goal of Chain Abstraction is to provide users with a truly multichain experience by hiding the technical complexities of underlying networks/blockchains, allowing them to perform on-chain operations on a single interface without worrying about the technical details of each network.
Some key features of Arcana Network include:
- Unified Balance: Combines assets from different blockchains into a single balance, optimizing liquidity utilization and reducing the need for unnecessary bridging transactions.
- Liquidity Defragmentation: Users can interact with applications supporting Chain Abstraction from a single wallet, eliminating the need to constantly switch networks.
- Auth: Native Arcana SDK for user authentication on dApps using social media accounts or email addresses.
- Gasless: SDK that eliminates gas fees for users by automatically managing them through developers or external sponsors.
Integrating Chain Abstraction on Aave, Uniswap, and Polymarkets
Arcana Network has recently launched Chain Abstraction technology on three DeFi platforms: Aave, Uniswap, and Polymarkets.
Supporting Chain Abstraction on Aave:
On Aave, Arcana’s Chain Abstraction allows users to manage their funds across multiple blockchains without the need for complex bridges.
Here’s how it works:
- Simplified Connection: Users connect to Aave with a compatible EOA wallet containing funds on different chains (e.g., Arbitrum and Optimism). Aave automatically recognizes the funds on all chains and combines them into a unified balance.
- Optimized Transactions: When a user wants to make a transaction, Arcana handles the entire process in real-time, including depositing the necessary funds and settling transactions on the chosen chain, all without manual intervention.
- Gas Fee Elimination: Gas fees are automatically managed by Arcana, eliminating the need for users to hold gas tokens on each chain.
- Automatic Rebalance: Arcana automatically rebalances funds across different chains at regular intervals or based on specific configurations, ensuring maximum capital efficiency for users.
Supporting Chain Abstraction on Uniswap:
Arcana’s Chain Abstraction is also available on Uniswap, one of the largest decentralized exchange platforms (DEX). Users can spend funds on one chain (e.g., Optimism) while using assets held on another chain (e.g., Arbitrum). For example, a user can hold USDC on Arbitrum but use it directly on Optimism to trade for ETH.
Supporting Chain Abstraction on Polymarkets:
Arcana’s Chain Abstraction technology is supported by Polymarkets, a market prediction platform. Users can deposit funds on Polymarkets, regardless of the chain where their assets are held. For example, a user with USDC on Optimism can directly send it to a deposit address on Polygon via Polymarkets without manually transferring funds between chains.
Arcana Network: What’s Next?
Arcana Network has opened registrations for its private beta version, allowing early users to experience cross-chain interactions. They plan to release more demonstration videos on YouTube and Twitter, showcasing Chain Abstraction on popular DeFi applications and Web3 platforms, increasing anticipation for the full release.
Other upcoming developments for Arcana include integrating a solver network to facilitate liquidity provision, launching a mobile wallet for on-the-go access, and providing SDKs for developers to integrate the technology more deeply into wallets and applications.
As Arcana prepares to launch its testnet in September and mainnet later this year, the protocol continues to forge partnerships across the Web3 ecosystem, aiming to create a robust ecosystem.
