Sharding Capital: Why Invest in the Omnichain Liquidity Infrastructure Entangle?
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Sharding Capital: Why Invest in the Omnichain Liquidity Infrastructure Entangle?
With Entangle nearing mainnet launch at the end of this month, this article dives into why Sharding Capital invested in Entangle.
Navigating Web3 tides with focused insightsPreface: The name of the Entangle project is derived from quantum entanglement, reflecting its vision of building connections, associations, and interoperability. Just as quantum entanglement links different particles, Entangle aims to connect disparate blockchain networks through its cross-chain liquidity and synthetic derivatives solutions, creating a unified and interconnected Web3 ecosystem.
Sharding Capital invested in Entangle in July 2023, participating in both the seed and private rounds. The current paper return is approximately 100x, with realized returns of 3–4x. Investing in Entangle was highly attractive due to its innovative solutions, strong ecosystem and partnerships, technical capabilities, team background, market demand, and potential applications—all providing a solid foundation for the project’s growth.
As a global market, the cryptocurrency and blockchain space is continuously iterating and optimizing. New blockchains, projects, and technologies are rapidly emerging, fragmenting the entire crypto market into countless isolated islands. The separation between chains and among projects is an undeniable reality, and the industry faces serious challenges around fragmentation and interoperability. Cross-chain communication and seamless liquidity management are critical issues that urgently need to be addressed at this stage of blockchain development.
Entangle, as an innovative project designed to address these challenges, has not only delivered technological solutions but also made significant progress in ecosystem development and product suite expansion.
With Entangle preparing to launch its mainnet by the end of this month, this article will delve into why Sharding Capital chose to invest in Entangle.
Innovative Solutions
The cryptocurrency and blockchain ecosystem consists of multiple independent networks and chains that lack effective interoperability and connectivity, preventing users and assets from moving freely across chains. This fragmentation not only limits user choice and flexibility but also increases the complexity of cross-chain interactions, hindering the overall development and maturation of the ecosystem.
Entangle addresses the fragmentation issue in the crypto market through several innovative components, enabling seamless cross-chain interoperability and liquidity management for users and developers.
Photon Messaging: A customizable, high-speed, and cost-effective omnichain messaging solution. Photon enables fast message transmission between any EVM or non-EVM networks, making cross-chain communication more convenient and efficient.
Universal Data Source: A low-latency, cost-efficient data infrastructure compatible with any Web2 or Web3 data source. The Universal Data Source simplifies data sharing and exchange across chains, offering developers greater flexibility and options.
Liquid Vaults and Synthetic Vaults: Provide cross-chain liquidity management and synthetic asset solutions. Users can manage and trade assets within these vaults without worrying about cross-chain barriers, enhancing asset liquidity and flexibility.
Cross-Chain Liquidity and Synthetic Derivatives
Positioned as an omnichain connector in the Web3 ecosystem, Entangle provides developers with a powerful set of infrastructure tools to build within this dynamic environment!
Entangle’s Liquid Vaults and Synthetic Vaults offer cross-chain liquidity management and synthetic asset solutions, leveraging synthetic derivatives to orchestrate liquidity and unlock value across common Layer1 and Layer2 ecosystems.
The Entangle DEX allows users to swap between USDC and LSD, and to create, trade, and manage their LSD positions. The Entangle DEX also supports cross-chain swaps via the Entangle Oracle.
Synthetic derivatives are financial instruments created synthetically, deriving their value from an underlying asset or index without directly holding it. The integration of cross-chain liquidity with synthetic derivatives offers users expanded investment and trading opportunities. Users can leverage cross-chain liquidity to seamlessly transfer assets across chains while using synthetic derivatives to track and trade price movements of various assets on different chains. This combination enhances flexibility and choice for users and contributes to improved liquidity and efficiency across the DeFi ecosystem.
Market Demand and Potential Applications
As an innovative project committed to solving key challenges in the cryptocurrency and blockchain space, Entangle addresses broad market demand and has extensive potential applications.
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Solving cross-chain communication and interoperability challenges
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Enhancing liquidity and efficiency in the DeFi ecosystem
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Providing broader investment and trading options
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Reducing transaction costs and risks
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Meeting growing market demand
By providing essential infrastructure, Entangle delivers an efficient and flexible solution for users and developers. As the cryptocurrency and blockchain sectors continue to evolve, Entangle is poised to become a unified omnichain foundational layer for Web3.
Strong Ecosystem and Strategic Partnerships
Entangle has established strategic partnerships with industry leaders including Arbitrum, Mantle, Linea, AAVE, Polygon, Stargate, Velodrome, and SushiSwap, integrating over 42 DApps and 16+ blockchains.
Entangle has made significant progress in establishing its presence within key blockchain ecosystems, unlocking diverse use cases across various Layer1 and Layer2 networks, DeFi protocols, real-world assets (RWA), GameFi, DEPin, AI, and more.
Invest Now, Shape the Future
In deciding to invest in Entangle, Sharding Capital recognized a revolutionary force—not just driven by innovative technology, but also grounded in a deep understanding of the overall direction of the cryptocurrency and blockchain industry. As a firm dedicated to identifying and investing in groundbreaking projects, Sharding Capital firmly believes that Entangle’s omnichain liquidity infrastructure will become one of the key pillars of the future crypto and blockchain landscape.
As the cryptocurrency and blockchain fields rapidly advance, Entangle will continue to play a unique role in facilitating cross-chain communication and seamless liquidity management, delivering a unified and interconnected Web3 ecosystem for users and developers. Sharding Capital will continue to closely monitor Entangle’s development and take pride in its future success.
Investing in Entangle is an investment in the future—one built on innovation, connectivity, and shared success. In this vibrant and opportunity-rich world of cryptocurrency and blockchain, Entangle will continue to play a pivotal role and lead the direction of industry evolution.
About Sharding Capital
Sharding Capital is an early-stage Web3 fund rooted in the Middle East and expanding across Asia, Europe, and the Americas. We support startup projects with ideas and resources to accelerate a more decentralized future. Our team members possess extensive Web3 industry experience and operational expertise, combined with deep regional networks in the Middle East and Asia, enabling us to help our global portfolio achieve precise market penetration and meaningful brand exposure.
Website: https://sharding.capital/
Twitter: https://twitter.com/ShardingCapital
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