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Sunrise Introduces Interliquid Networks: Unifying Blockchain with Shared Liquidity

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Sunrise, now in testnet, evolves from a Data Availability layer to pioneer Interliquid Networks, solving blockchain's fragmented liquidity problem with a unified ecosystem for rollups and L1s like Ethereum and Solana.

Crypto Rich

May 13, 2025

Blockchain ecosystems today operate as isolated islands. Rollups and Layer 1 blockchains compete for liquidity and rely on vulnerable bridges to connect with each other. This fragmentation creates barriers that limit scalability, security, and economic efficiency across the entire blockchain landscape.

On May 12, 2025, Sunrise announced its evolution from a specialized Data Availability (DA) layer into a foundational platform for "Interliquid Networks" - an innovative framework where sovereign rollups and major L1 blockchains like Ethereum and Solana share liquidity seamlessly. With their testnet now live, as highlighted on their website, Sunrise is actively testing this technical advancement, marking a significant shift in how blockchain ecosystems can interact and operate together in the future.

The Problem of Fragmented Liquidity in Blockchain Ecosystems

The current blockchain landscape faces a fundamental structural challenge. Individual chains operate in silos, forcing protocols to:

  • Compete for limited liquidity rather than sharing it.
  • Rely on vulnerable cross-chain bridges that introduce security risks.
  • Deal with wrapped tokens that add complexity and inefficiency.
  • Build separate liquidity pools that fragment capital across ecosystems.

These limitations directly impact users through higher transaction costs, fragmented user experiences, and increased security risks. For developers, this environment makes launching new rollups or protocols particularly challenging, as they must bootstrap liquidity from scratch.

Sunrise recognized that while data availability was initially viewed as the core challenge for blockchain scaling, the deeper issue is actually fragmented liquidity. This insight led to their expanded vision for Interliquid Networks.

From Data Availability Layer to Interliquid Networks

This recognition of liquidity fragmentation as the root problem marks a pivotal moment in Sunrise's journey and the broader blockchain infrastructure development. Initially, the team focused on building a specialized Data Availability layer secured by Proof of Liquidity (PoL). This approach allowed users to receive blobspace by providing liquidity to PoL pools of their choice, enabling DA Fee Abstraction for L2 rollups.

However, the team's perspective shifted as they observed ecosystem developments. They realized that data availability challenges were symptoms of a more fundamental problem: liquidity fragmentation across blockchain networks.

This recognition prompted Sunrise to expand its vision beyond a specialized DA layer to become a comprehensive foundation for Interliquid Networks - a mesh of sovereign rollups and major L1s unified by shared liquidity from day one.

Technical Architecture: How Sunrise Enables Interliquidity

Sunrise's technical implementation combines several advanced features to create a unified liquidity environment across different blockchain ecosystems.

Complete Fee Abstraction System

Sunrise has implemented full Fee Abstraction as a core protocol function, going beyond their earlier DA Fee Abstraction approach. This means:

  • Users can pay for any transaction (including DA blob publishes) using tokens they already hold.
  • The system automatically converts a small fraction into RISE tokens to cover gas fees.
  • Projects can use their native tokens as gas from day one, eliminating friction.

This approach removes a significant barrier for both users and developers, allowing seamless transactions without requiring specific tokens for different networks.

High-Performance Data Availability

Sunrise delivers sub-15-second data availability through several technical innovations:

  • Off-chain Erasure Encoding: Blobs are encoded off-chain with validators storing only the Merkle root on-chain, significantly reducing storage and computational requirements.
  • Off-chain Blob Propagation: Transactions carry only metadata while full payloads travel over a dedicated P2P blob network.
  • KZG Commitment Security: Each blob is secured by a single on-chain KZG commitment (a cryptographic proof system that enables efficient verification of polynomial data) for rapid integrity verification.

These optimizations create an infrastructure capable of supporting demanding applications like DePIN networks, AI applications, gaming, and high-frequency DeFi transactions. For example, a gaming rollup on Sunrise could process thousands of in-game transactions per second with sub-15-second data availability, ensuring a seamless experience for players across different blockchain ecosystems.

Proof of Liquidity Mechanism

At the heart of Sunrise's approach is an expanded Proof of Liquidity (PoL) model based on Berachain's design. Berachain's PoL model incentivizes liquidity provision by rewarding users who stake assets in designated pools, aligning incentives across the ecosystem—a concept Sunrise has adapted and expanded for interliquidity.

The system uses a dual-token structure:

  • RISE: A transferable token used for gas, rewards, and ecosystem payments.
  • vRISE: A non-transferable governance token earned by providing liquidity.

The PoL mechanism creates a virtuous cycle where liquidity providers earn vRISE, giving them voting power to direct incentives toward specific pools, projects, and rollups. The system rewards pools based on real trading volume, ensuring value flows to where it's actually being used.

This model aligns incentives across validators, protocols, and liquidity providers - making it possible to launch rollups with liquidity available from day one.

 

Sunrise's Interliquid Thesis
The Interliquid Thesis (X/Twitter)

Practical Benefits of Interliquidity

Sunrise is actively developing integration paths with Ethereum, Solana, and Berachain to enable shared liquidity flows across these ecosystems. This integration creates concrete benefits for different stakeholders.

For Users

The Interliquid Network approach, currently being tested on Sunrise's live testnet, promises several advantages for blockchain users upon its full launch:

  • Seamless token swaps across rollups and L1s through Sunrise's native DEX without wrapped tokens.
  • Ability to provide liquidity and earn rewards based on actual usage metrics.
  • Governance participation through vRISE voting to influence ecosystem direction.

These benefits translate to lower costs, reduced complexity, and a more unified experience across blockchain platforms.

For Developers

The Interliquid approach, now in its testnet phase, aims to transform how developers can build and launch new projects once fully deployed:

  • Deploy rollups with built-in modular DA and immediate access to shared liquidity.
  • Bootstrap tokens with genuine volume and sustainable incentive structures.
  • Connect to an ecosystem that rewards alignment and provides day-one liquidity.

These capabilities address one of the most significant challenges for new blockchain projects: acquiring sufficient liquidity to support a healthy ecosystem.

Market Context and Future Outlook

According to analysts, the data availability layer market alone has potential revenue of approximately $2 billion per year as rollups scale across blockchains. Sunrise's expanded vision for Interliquid Networks positions it to address both DA needs and the larger cross-chain liquidity and blockchain interoperability challenges facing the industry.

This approach aligns with industry trends highlighted in analyses like Multicoin Capital's Solana thesis, which emphasizes the importance of liquidity innovations such as conditional liquidity in advancing blockchain ecosystem development.

Sunrise asserts that "the next generation of rollups and DeFi protocols will be interliquid by default." In this vision, liquidity becomes a shared resource that enhances sovereignty rather than limiting it.

Join the Interliquid Future

Sunrise's Interliquid Thesis and expanded vision represent more than a technical upgrade - they suggest a fundamental shift in how blockchain ecosystems can interact and grow together. By solving the fragmented liquidity problem, Sunrise aims to enable a more connected, efficient, and secure blockchain landscape.

With the testnet now live, the team is actively inviting developers to join the testing phase and explore what they might build on an interliquid network. Community responses show significant interest in upcoming developments, with particular attention to token-related announcements as Sunrise progresses toward a mainnet launch.

For blockchain builders and users alike, Sunrise's Interliquid Networks concept offers a compelling vision of a more unified and liquid blockchain future—one where boundaries between ecosystems become less relevant and liquidity flows to where it creates the most value. You can find more information by visiting sunriselayer.io or following them on X (@SunriseLayer) for the latest news.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].

Author

Crypto Rich

Rich is a devoted husband and father from The Netherlands with a passion for cryptocurrency (since 2017) and technology. He enjoys exploring the digital world as much as he does the simple pleasure of long walks through the Dutch landscapes.

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