Everything Protocol Aims to Consolidate DeFi Liquidity with Single Reserve
Everything Protocol claims to have solved one of decentralized finance's (DeFi) longest-running problems: fragmented liquidity. According to its new whitepaper, DeFi markets currently operate with separate pools for trading, lending, leverage, and limit orders, which reduces capital efficiency and creates dependencies between protocols.
The proposed architecture by Everything Protocol collapses these functions into a single liquidity reserve for each token pair. This would allow the same capital to perform multiple financial functions instead of being locked into one application at a time.
The whitepaper attempts to show how this model can work mathematically, detailing accounting rules, solvency requirements, liquidation mechanics, and safeguards to keep the system functional during volatile or adversarial market conditions.