Cashmere Labs is a cross-chain aggregator protocol that allows users to transact on multiple chains without slippage. It is built on Layer Zero and is one of 12 finalists of Binance Labs’s MVB Season 6. The project aims to optimize the user experience, including decentralization, no slippage, and MEV prevention. Cashmere is currently in the testnet phase.
Cashmere Labs’s products
Cashmere Labs is developing two main products including Cross-chain swap and Liquidity Pool.
Cross-chain Swap
Cross-chain Swap allows users to exchange assets between various networks including Ethereum, BNB Chain, Fantom, Avalanche C Chain, Polygon, Optimism, Arbitrum. Along with Liquidity Pool, users will enjoy low slippage and low transaction fees when trading on Cashmere Labs.
Liquidity Pool
Liquidity Pool on Cashmere Labs is divided into Basic Pool and Boosted Pool.
Basic Pool: Users only need to provide the token pair and can receive 70% of the transaction fee from the token pair they provide.
Boosted Pool: Cashmere Labs’ new mechanism allows users to lock CSM – the main token of the platform, and receive veCSM. veCSM holders will receive 30% transaction fees from all liquidity pools as well as CSM tokens from mining activity on Boosted Pool.
By using two liquidity pools, Cashmere Labs offers users more options. With the launch of Boosted Pool, it also creates more incentive for users to hold and use CSM.
Cashmere Labs’s revenue
Cashmere Labs’s revenue comes from transaction fees when users use the Cross-chain swap, however, since the platform is in testnet stage, Cashmere Labs’ current revenue may be coming from minting “Cashmere Labs Testnet Early Adopter” NFT collection on Zora.
The number of NFTs that have been minted of the project is up to 70,302, with a price of 0.0055 ETH each. So Cashmere Labs revenue is equal to 70,032 x 0.0055 ETH, or $630,000.
Highlights of Cashmere Labs
Protect users from MEV attacks
MEV occurs when block producers can determine the order in which transactions are processed on the blockchain and exploit that power to their advantage. By calculating additional parameters of liquidity in other DEXs, the platform will automatically calculate the lowest slippage that makes MEV bots unable to gain profits. As a result, Cashmere Labs can protect users from MEV attacks.
Decentralization
Cashmere Labs towards decentralization by using smart contracts to perform multi-chain transactions. Transactions are performed by relayers, and these relayers will validate the token contract, the number of tokens, etc. between the two chains. Relayers are also nodes that confirm and forward transactions, similar to validators.