New concept in Web3: Clearing layer

Explanation by Arjun Bhupatani, co-founder of Everclear

Clearing layers is a mechanism that lets different ecosystem parties coordinate to net off fund flows. Instead of constantly rebalancing funds across chains like Polygon and Arbitrum, clearing layers help find coincidences of wants, essentially allowing us to do nothing and save on costs. Netting is free, and that’s the game-changer.

How does it work? Think of it as its own rollup or state container where everyone declares their fund movements. The rollup finds matching needs between participants, using strategies like a modular Dutch auction, similar to those in Gnosis.

Importantly, it’s a zero TVL system - not a liquidity pool or bridge - but a coordination tool for existing bridges and pools to net off obligations.

Historically, every solution to fragmentation has been to build a better bridge with more liquidity, but each new bridge just adds to the problem.

The goal with Everclear is to change this by allowing cross-chain protocols to work together for a globally optimal outcome.

The clearing layer sits at the foundation of the new chain abstraction stack, coordinating settlements between intent solvers, market makers, and exchanges that need to move funds across chains efficiently.