Formerly known as a multi-solution DEX, and now, the DEX Engine, Algebra, has preserved and streamlined the concept of concentrated liquidity; adding up the unmatchable functionality. Powered by Algebra, the already integrated decentralized exchanges add up some diversity to the DEX landscape, increasing competitiveness in the market and giving users the chance to choose what is the best match for them.
Algebra Protocol, a well-established DEX engine utilized by 25 DEXes, has taken a significant leap forward by introducing ‘Integral’ Modular Architecture. This innovation empowers DEXes to compete with Uniswap V4, enhancing gas cost efficiency, and streamlining the update process. The breakthrough technology was unveiled on October 17th through Swapsicle DEX on the Mantle Blockchain.
Algebra ‘Integral’ offers enhanced flexibility as a DEX engine, optimizing gas costs and functionality. Its modular architecture allows effortless addition or removal of modules, reducing gas costs by up to 20% on average and facilitating plugin updates without disruption. This approach expands the functionality of decentralized exchanges for a more competitive trading experience.
By moving secondary functionalities into plugins, the core of the protocol is streamlined, improving security and overall safety for participants’ assets and transactions.
Plugins. Interaction between Liquidity Pools and Plugins.
In brief, a Plugin is a smart contract that enhances a Pool’s functionality. Currently, each Pool can have only one Plugin initialized, but it can be disconnected or replaced. There’s also the potential for multiple plugins to connect to a Pool through a Proxy Plugin in the future.
What a Plugin can do: execute actions on the blockchain, alter pool fees, perform additional checks, etc.
What a Plugin cannot do: directly take someone’s liquidity or tokens, or change the mathematical calculations.
Plugins communicate with Pools through Calls, which are program requests that Pools can make to a Plugin before or after specific key events.
In other words, by providing DEXes with a lean core that consists only of the main features & avoids additional features placed into plugins, ‘Integral’ significantly reduces gas expenses and increases overall efficiency & security.
That’s all you need to know for now!
Key Highlights of ‘Integral’:
Modular Architecture & Gas Efficiency: ‘Integral’ boasts a modular architecture, ensuring seamless functionality and reducing gas costs by 10-20% on average compared to Uniswap V3 (and up to 80% in some cases). This approach allows for a more efficient and cost-effective DeFi trading experience. For instance, take a look at how Integral saves up to 80% of gas costs compared to Uniswap V3, for different transactions:
After fulfilling essential security procedures, such as audits, voting, and liquidity withdrawal, we can now enhance DEX functionality with new plugins without requiring liquidity migration. The core, responsible for managing liquidity pools and core mechanics, remains unaltered. This approach balances security and functionality effectively.
Immutable Core + Plugins: same to V4, the protocol’s lightweight core, including a set of the most necessary functions, combined with customizable Plugins, offers flexibility without large-scale and expensive updates. These plugins integrate with the core platform functions and enable easier updates and customization. Unlike UniV4 Hooks, Integral’s Plugins can be updated or changed within an existing pool, eliminating the need to create new pools and reducing unnecessary liquidity migration.
Plugin Authorisation & Control: while being an ecosystem, open for Plugins by independent developers, ‘Integral’ places a strong emphasis on security by delegating authorization and Plugin deployment decisions to the administration and community of the DEX platform. This approach ensures a higher level of trust and accountability of the platform and sets it apart from Uniswap V4, where Hooks can be launched by any developer. However, associating a pool with an updatable Plugin is optional: the community can keep the Plugin also immutable.
Ready-to-Use Plugin Offerings: ‘Integral’ provides a default set of base plugins that can be instantly utilized upon release, ensuring users have immediate access to a diverse set of functionalities for their trading needs. The bundle includes Limit Orders, TWAP-Oracle, Volatility-Oracle, Dynamic Fees and Onchain Farmings.
Single Pair Pools: To combat liquidity fragmentation, ‘Integral’ maintains Algebra’s tradition of creating one pool per each token pair. Unlike Uniswap V4, which requires creating a new pool for each new feature, this strategy optimizes liquidity routing, providing users with enhanced market efficiency.
More DEXes, already fueled by Algebra, are yet to implement the Integral V4 codebase into their platforms.
With 25 DEXes already embracing Algebra DEX Engine, including Camelot on Arbitrum, THENA on BNB, QuickSwap on Polygon, StellaSwap on Polkadot, Swapbased on Base, Lynex on Linea and even more, the adoption of ‘Integral’ is expected to grow, ushering in a new era of decentralized trading. ‘Integral’ addresses liquidity fragmentation, reduces gas costs, and provides flexible plugin capabilities, reshaping the DEX landscape.
Algebra is a Protocol enabling projects to integrate Concentrated Liquidity tech, alongside other groundbreaking features — Dynamic Fees, Built-in Farming, and more. Already seamlessly integrated into various DEXes across different chains, including Camelot, THENA, QuickSwap, StellaSwap, Zyberswap, Equilibre, Magma, Swapsicle, Synthswap, eZKalibur, Glacier, and more, Algebra propels them to higher trading volume & enhanced capital efficiency. Learn more on our website: algebra.finance.