A deep dive into the architecture that secures your assets on Ethereum while unlocking tradability on the Canton Network.
Here is a look “under the hood” at how AllDefi’s asset architecture works — transforming your idle deposits into liquid, yield-bearing instruments.
The Three-Layer Architecture
Our architecture operates across three distinct layers:The Asset Layer (Security), The Connection Layer (Bridging), and The Equity Layer (Liquidity).
Let’s break down the journey of a single USDT from deposit to tokenization.
1. The Asset Layer: Security & Yield (EVM Side)
Everything begins on the Ethereum Mainnet. This is where the “real” assets live and where the yield is generated.
- The Deposit: A user (User A) deposits funds via the AllDefi Application.
- The Custody: Importantly, these funds are sent directly to our Custody Address. This is not a simple hot wallet; it is the entry point to The Vault, secured by institutional-grade MPC (Multi-Party Computation) Custody. This ensures that there is no single point of failure when it comes to asset security.
- The Yield: Once secured in The Vault, the funds are deployed into on-chain strategies to generate consistent APY. (read more https://medium.com/@alldefi/alldefi-product-documentation-73e04b2246d2)
The key takeaway: Your principal is safely held in a battle-tested EVM environment, earning rewards.
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2. The Connection Layer: Synchronization
How do we reflect this EVM activity on the Canton Network without moving the heavy liquidity?
- The Trigger: When the EVM Strategy Vault receives a deposit or undergoes a status change, the system sends a “Trigger” signal to the Canton Network.
- Unified Control: Through the AllDefi Application, the user maintains a unified view. The app acts as the command center, linking the user’s EVM deposit action to their identity on the Canton Network.
3. The Equity Layer: Tokenization (Canton Side)
Upon receiving the settlement trigger, the “AllDefi on Canton” module activates.
- The Key to the Vault: ATV is functions as the Digital Ownership Certificate for your deposited funds. Holding the ATV is the only way to proof the underlying assets and their yield.
- Delivery: These certificates are distributed directly into User A’s Canton Wallet.
Why This Architecture Changes the Game
Liquid Ownership
In AllDefi, your ownership is encapsulated in the ATV token, making it fully transferable and tradable.
- Unified Rights: The ATV represents the sole and exclusive right to both the underlying principal in the EVM Vault and the generated yield. The two are strictly coupled: Whoever holds the ATV, receives the yield.
- Use Case: User A needs immediate liquidity but doesn’t want to unwind their yield position.
- Execution: User A trades their ATV to User B on the Canton Network.
- Outcome: User B instantly acquires the full claim to the vault assets and future yield. The underlying USDT in the EVM Vault remains untouched, compounding continuously. We achieve ownership transfer without asset movement.
A Gateway to the Canton Ecosystem
This architecture acts as a massive funnel for user and asset acquisition for the Canton Network. We achieve two critical migrations in a single tx:
- Asset Onboarding: We instantly standardize external EVM liquidity into Native Canton Assets (ATV), increasing the network’s TVL and utility.
- User Onboarding: AllDefi serves as a frictionless ramp. A user simply depositing USDT on Ethereum is automatically provisioned with a Canton Wallet and Canton Assets. This mechanism effectively bootstraps the user base, laying the foundation for future financial activities on Canton.
Simultaneously, within the native ecosystem, AllDeFi serves as a projected Yield Sink for $CC holders (Staking Coming Soon). This integration aims to curb sell pressure and incentivize retention, maximizing the network’s TVL and intrinsic value.
AllDefi is not just another yield aggregator; it is a liquidity layer that bridges the gap between public chain yield and private network utility.
By keeping the heavy lifting on EVM and the value transfer on Canton, we offer the best of both worlds: High APY, Institutional Security, and Instant Liquidity.
