Unified Liquidity Reserve Seeks to Streamline DeFi Services

Everything Protocol has introduced a new whitepaper proposing a unified liquidity reserve to power swaps, lending, leverage, and limit orders in DeFi. This design aims to reduce fragmentation by allowing the same capital to serve multiple financial functions.

The protocol uses an internal price band instead of external oracles for credit decisions, which changes according to predefined rules based on the pool's trading state and time.

Borrowing and liquidations are tied to shared liquidity within the market, with lending capacity determined by the capital that would ultimately absorb liquidations. This helps maintain solvency during periods of market stress.