Wormhole is a groundbreaking innovation in the blockchain industry, paving the way to a multichain future previously unattainable.
The technology developed by Wormhole is instrumental in overcoming the challenges of interoperability between blockchains, both EVM and non-EVM. Curvance uses Wormhole technology to overcome composability limitations and bring its solutions to multiple chains. The tech is also leveraged to improve the protocol scalability with the Multichain Gauge System.
At the core of Wormhole lies a sophisticated architecture designed to facilitate seamless communication and data transfer across different blockchains. From a high-level overview, Wormhole multichain communication occurs in three key areas: the source chain, off-chain processing, and the target chain. The source chain initiates actions or interactions, which are then validated and relayed off-chain before execution on the target chain.
Central to Wormhole's architecture is the Guardian Network, a group of 19 validators contributing to the verification and signing of Verifiable Action Approvals (VAAs). VAAs act as the foundational units of multichain communication, ensuring the authenticity and integrity of data transmitted between disparate blockchains.
VAAs serve as the lifeline of Wormhole's multichain functionality. These verifiable and authenticated packets of multichain data are generated whenever a multichain application contract interacts with the Core Contract. They encapsulate validated messages that traverse different blockchains, ensuring secure and reliable multi-chain communication.
One of the groundbreaking features within Wormhole is its Automatic Relayers. These components revolutionize multichain development by eliminating the need for developers to create and maintain off-chain relayers. By leveraging a pre-configured and decentralized network, Automatic Relayers streamline the integration process for developers. They enable developers to focus solely on the core logic of their dApps, reducing operational complexities and accelerating development cycles.
Automatic Relayers drastically reduce operational costs by removing the need to develop, host, or manage individual relayers. This simplified integration process allows for seamless delivery and reception of verified messages across diverse blockchains, making multichain functionality more accessible and efficient for developers.
Curvance leverages Wormhole and its automatic relayers for its multichain strategy and to power the multichain gauge.
On top of the Multichain Gauge System, a more mature version of SushiSwap's liquidity mining infrastructure has been built for protocols or other entities to offer incentives to users seamlessly. Traditionally, creating secondary yield farms for additional incentives involved complexities and user actions.
Projects, from regular DeFi protocols to blockchain networks and NFT collections, can integrate with Curvance to host an LP pool supported in an isolated market and directly configure incentives, enabling users to immediately access supplementary rewards without altering their actions.
This flexibility empowers the partners to reward users who deposit assets while allowing control over incentive program parameters like epochs, token allocations, and type of reward tokens. A new paradigm of custom-tailored liquidity inventive programs opens up to allow true permissionless yield farms for anyone.
Protocols and blockchain networks can use Curvance's infrastructure. For blockchain networks, the Curvance protocol can act as a means of obtaining users and liquidity from their competitors by utilizing the Multichain Gauge System.
With Curvance, blockchain networks can directly incentivize specific user bases by creating tailored liquidity incentive programs.
Like any product by Curvance, New Age Liquidity Mining will also live on any chain, allowing blockchain networks to launch incentive programs on other chains. This allows them to tap into the fees and volume other chains create.
By acquiring veCVE lock dominance, the chain receives a share of the biweekly rewards, which would go to the lockers on their chain. This creates a fourth vertical for chains to grow network usage beyond airdrops, STIPs, or grants.
The Multichain Gauge is a new, innovative system developed to improve the vote-escrow model by enabling cross-chain voting and reward distribution. Most gauges only allow governance participants to vote on the respective chain.
Curvance’s multichain gauge allows:
DAO participants to lock $CVE on all supported chains.
Participants to vote on any emission policies.
$CVE token lockers receive protocol fees pro-rata generated from all supported chains.
Anyone to incentivize liquidity on the supported chains.
Liquidity can be incentivized on all supported chains.
Protocols can vote on their token pairs on specific chains to increase the gauge weight for the direction of emissions there.
The multichain gauge utilizes Snapshot’s gasless voting system.
Snapshot is a decentralized platform that facilitates governance in decentralized applications and protocols. Its gasless system allows users to participate in voting and decision-making processes without needing to pay gas fees, making participation more accessible and user-friendly.
Voting is done during voting epochs. Upon conclusion, votes are moved on-chain and inputted into a matching engine on Ethereum that determines the portion of emission on each pool and chain. Those results are bridged through the cross-messaging system to each partner gauge.
Like the voting and gauge system, the CVE locker system is multichain, with Ethereum acting as the canonical chain. Every epoch, each partner chain reports back its veCVE-locked token state to Ethereum.
This allows the Ethereum gauge to tabulate USDC and CVE rewards for the epoch per veCVE locked. All rewards are then distributed similarly to the gauge emissions. Rewards from Ethereum become immediately available, and cross-messages are sent to each chain with the appropriate USDC and CVE rewards for each partner chain. Below, you can see the visualized communication system:
The multichain gauge, as developed by Curvance, introduces a unified vote-escrow system that utilizes cross-messaging to connect Ethereum with multiple partner gauges. Users can lock CVE tokens on any chain and vote for any pool while enjoying equal protocol fee sharing. This innovative design allows for gas savings, deep liquidity, and fee generation from all supported chains.
The system is chain-agnostic and able to accommodate numerous chains with minimal maintenance.
