Overview

Clovis is building the infrastructure to unify fragmented liquidity across chains. Today, lending markets, DEXs, and bridges operate in silos, splitting liquidity across hundreds of deployments and leaving capital underutilized. Clovis solves this by introducing a clearing and settlement architecture: a Clearing Layer on the hub chain executes global logic, while lightweight vaults on connected chains handle custody and settlement locally. This creates a shared pool of liquidity that can be utilized for lending, swapping, and bridging to any chain, effectively turning every deposit into stacked yields across multiple products.

Pain Points

1. Liquidity fragmentation across chains

DeFi liquidity is spread across 400+ networks, thousands of pools, and duplicate protocol deployments. Each new instance of a lending market (e.g., Aave v3, Morpho) or DEX (e.g., Uniswap) launches at zero liquidity, resulting in shallow books, higher slippage, and unstable lending and borrowing rates until significant TVL is attracted. As more chains come online, liquidity becomes even thinner, and price discovery becomes fragmented, forcing users and protocols to compromise between the best price and the broadest access.

2. Siloed primitives and incomplete composability

On most chains, lending, swapping, and bridging operate in isolation, and liquidity in one cannot be reused in another. Even within a single protocol family, risk siloing means liquidity is not shared between deployments. Intra-chain composability, as pioneered by Balancer, Fluid, and Euler, improves efficiency locally but does not extend across deployments or networks. The market lacks architecture that enables opt-in liquidity sharing between systems while preserving clear risk boundaries.

3. Idle liquidity and missed yield

Buffers and design constraints keep a significant share of capital inactive across major primitives:

• Lending: markets typically target around 80-90% optimal utilization on stables, leaving a large share unborrowed to protect withdrawals and maintain rate stability.

• Bridging: Monthly cross-chain volume in 2024 averaged $1.5–$3.2B, yet clearing-layer research shows that ~80% of flows could be netted, meaning the industry often moves more liquidity than necessary to achieve final balances.

• DEXs (AMMs/CLMMs): Liquidity is only engaged during trades. Out-of-range positions and quiet intervals keep LP funds under-utilized despite concentrated liquidity advances.

The result is lower realized APRs for LPs, higher execution costs for traders, and slower growth for protocols in a yield-driven ecosystem.

4. The cold-start trap for new networks

Without day-one access to core DeFi primitives such as DEXs, lending markets, and instant bridging, new L1s and L2s struggle to attract users, TVL, and developers. These primitives themselves need liquidity and activity to function. This creates a bootstrap bottleneck where ecosystems stall before reaching the depth needed for competitive pricing, robust market activity, and sustainable growth.

Solutions

1. Liquidity fragmentation across chains → Shared liquidity across products and chains

Clovis implements a hub-and-spoke architecture with Sei Network as the unified liquidity hub. Lending, DEX, and bridge users on spoke chains access the same shared liquidity through lightweight vault contracts. This eliminates the need to bootstrap siloed liquidity for every new deployment, allowing immediate depth and pricing efficiency across the network.

2. Siloed primitives and composability gaps → Vertically integrated yield surfaces

Clovis integrates lending (Clovis Market), trading (Clovis Exchange), and bridging (Clovis Transport) into a single system backed by a global TVL base. Liquidity providers can opt into multi-function strategies that allocate capital across lending, swapping, and bridging according to their risk preferences.

Example: A depositor supplies assets to Clovis Market, earning lending, bridging, and asset management fees, then reuses those same assets as LP positions in Clovis Exchange to capture swapping fees on top.

3. Idle liquidity and missed yield → Liquidity stacking and intent-based routing

Clovis enables liquidity to generate returns across multiple layers simultaneously by stacking lending, LP, and bridging yields. A dynamic rebalancing system monitors vaults for minimum and maximum thresholds. When triggered, it reallocates assets from chains with surplus capital to those with shortages, using the most efficient route available — third-party bridges such as deBridge and Mayan, or canonical options like CCTP and OFT transfers.

Clovis also benefits from netting, where offsetting flows reduce the need for physical asset movement. Research by Everclear shows that up to 70% of bridging activity nets out, meaning Clovis can act as a clearing layer that minimizes cross-chain transfers while maintaining productive liquidity.

4. Cold-start problem for new chains → Plug-and-play DeFi infrastructure

Clovis provides emerging L1 and L2 networks with immediate access to lending, trading, and bridging through a single integration. By offering universal lending rates and DEX pricing, Clovis improves capital efficiency and enables local rate and price arbitrage. New ecosystems can tap into existing liquidity and user flows without the time and cost of building foundational DeFi primitives from scratch, accelerating early-stage growth.