Omnichain Liquidity

Why do we need omnichain 80-20 vaults?

Decentralized perps suffer from low liquidity . To build the most liquid ETH perp we plan to bridge all yield generating ETH + USD across chains into our 80-20 vault strategy. By doing this, we can unify $50B+ of ETH+USD liquidity into our ETH perp.

How do omnichain 80-20 vaults work?

Omnichain vaults allow users to deposit yield generating assets from Layer Zero compatible chains into Rage. The architecture of cross chain vaults have a few subtleties:

• Arbitrum (Host Chain): This is the chain the holds all the business logic of the perp and the vaults
• Other Chains (LP Chains): These are chains where LP collateral is held and managed.

What are the cross-chain operations of the vault?

Rage uses Layer Zero's cross-chain messaging protocol to pass messages to/from Host Chain and LP Chain. And we use Stargate to bridge USD PnL to/from the vaults. There are two core operations:

LP Deposit/Withdraw

When LPs deposit omnichain liquidity the LP Chain (source chain) sends a message to the Host Chain (destination chain) to mint virtual liquidity into the Rage vAMM pool. The opposite happens when LPs withdraw liquidity from the vault.

Asset Rebalance/Reset

When the vault needs to rebalance assets, the Host Chain (source chain) must send a message to the LP Chain (destination chain). In addition to the message, the source chain may need to send or receive assets (via Stargate).