Algebra Integral: the first live modular AMM revolutionizing DeFi
Introduction
In this article, we’ll delve into the groundbreaking technology behind Algebra Integral, explore its versatile Plugin system, attracting an ecosystem of projects and independent developers around Integral with the help of Plugin Marketplace, highlight its successful integrations and achievements, and illustrate why it is the go-to solution for DEXes aiming to enhance their liquidity management and trading efficiency. Join us as we uncover the transformative power of Algebra Integral and how it is poised to set new standards in the DeFi ecosystem.
Contents
- Introduction
- Understanding Algebra Integral
- The Power of Plugins
- Developed Plugins
- Future Plugin Developments
- Plugin Marketplace
- Integrations
- Strategic Partnerships with DeFi Product Teams
- Benefits for DEXes
- Conclusion
Understanding Algebra Integral
Algebra ‘Integral’ is an advanced solution for decentralized exchanges that introduces a Modular Architecture with custom plugins, reinventing the way DEXes operate. Integral divides the previously monolithic infrastructure into two essential components: the Core Codebase & Plugins, which play a crucial role in enhancing the efficiency, security, and adaptability of DEXes, competing with the Uniswap V4 approach.
The Core code of Integral is the heart of the platform, hosting the fundamental features necessary for DEX key functionality. It manages liquidity pools and the basic mechanics of DEX operations, serving as an immutable and unchangeable core to ensure the security of users’ funds. This Core code minimizes gas wastage, streamlining gas costs and increasing efficiency. Read more here.
The Power of Plugins
While the Core is responsible for the fundamental operations, Plugins are designed to expand the functionality of Decentralized Exchanges (DEXes) and address the inherent inflexibility issues of their codebases. These custom plugins are independent smart contracts that seamlessly connect to a DEX’s liquidity pool, allowing DEX DAOs to tailor functionalities precisely to their needs. The power of plugins lies in their capacity to introduce new features, improve user experience, and enhance the overall efficiency of DEX operations with minimal disruption and no liquidity migration.
As we delve into the following sections, we will explore the various plugins already developed and those currently in development. Each plugin addresses specific needs and introduces unique capabilities, showcasing the innovative potential of Integral’s plugin architecture.
Basic Plugins
Eternal Farming: it enables distribution of farming rewards based on the duration of liquidity provision in price ranges during trading. Allows users to earn rewards that reflect commitment to liquidity over time.
TWAP-Oracle: Algebra’s TWAP Oracle plugin provides time-weighted average price data for accurate market information. Trust in reliable pricing data to make informed trading decisions on your DEX.
Dynamic Fees: this plugin calculates swap fees based on real-time market dynamics, trade size, pool liquidity, & volatility, ensuring optimal pricing for all transactions.
Emergency Stop: Algebra’s Emergency Stop Plugin is designed to ensure security and mitigate risks with. In case of unforeseen incidents, stop all pool functions except liquidity withdrawal, offering peace of mind to DEX operators and users alike.
Other Plugins (Ideas & Plugins under Development)
Limit Orders: the Plugin is set to empower users to set specific price levels for buying or selling assets, offering flexibility & precision in trading execution. No external oracles required!
Liquidity Management (developing in collaboration with Brokkr): allow users to deposit funds and let the plugin handle liquidity management, ensuring optimal liquidity utilization and ALM strategies for DEX operators and liquidity providers.
Fees Discount based on NFT holding (developing in collaboration with Brevis): this Plugin is set to allow users owning certain NFTs enjoy reduced transaction costs, fostering engagement and incentivizing long-term participation in the ecosystem
Dynamic Fee Plugin Based on Trading Volume (developing in collaboration with Brevis): the Dynamic Fees Plugin also offers reduced transaction fees to users based on their historical trading volume, recognizing and rewarding their contribution to liquidity and market activity.
Fees Discount for Staking (developing in collaboration with Brevis): this Plugin aims to incentivize users who stake a certain amount of the project’s native token — by applying the fee discount automatically during the next trade.
Fee Discount for LP (developing in collaboration with Brevis): this Plugin aims to incentivize LPs by applying the trading fee discount based on the amount of liquidity they provide and the certain continuous duration of liquidity provision. Larger and longer-term liquidity provision can be granted more significant fee discounts.
Whitelist/Blacklist for Trading (for future development): such Plugin could allow a DEX to curate trading processes by whitelisting trusted addresses and blacklisting those should be avoided.
Whitelist/Blacklist for Providing Liquidity (for future development): such Plugin could allow a DEX to curate liquidity provision by whitelisting trusted addresses and blacklisting those should be avoided.
Token Sale (for future development): such Plugin could manage the full scope of the token sale process. Whitelist for buyers, exact amount for every address, Liquidity Bootstrapping Pools emulator.
Plugin Marketplace
To store and showcase a variety of plugins, detailing the development and audit status of each, Algebra introduced the Plugin Marketplace.
It serves as a connection point between DEXes and independent developers, fostering a collaborative ecosystem built around Algebra Integral: the developers are incentivized by a share of fees generated by the pool, to which their Plugin is connected. Developers also can create their own pools with their own plugins — they are able to determine which plugins may be popular and bet on a certain idea, making a profit from it.
By bridging DEXes and innovative developers, the Plugin Marketplace empowers the DeFi community to thrive and evolve. Explore the Plugin Marketplace at https://market.algebra.finance.
Integrations and Partnerships
As of the moment of the publication, Algebra Integral is successfully deployed by the following DEXes:
- Swapsicle on Telos & Mantle,
- KIM Protocol on Mode Network,
- Spirit Swap on Fantom Foundation,
- Horizon on Linea
- and Fenix on Blast.
Upcoming integrations include:
- Yaka Finance on Sei Network,
- SwapX on X Layer,
- BladeSwap on Blast,
- Fibonacci on Form,
- Thirdfy on Arthera,
- Grizzly on Berachain,
- Henjin on Taiko,
and four more to be revealed, totaling in 16 approved partnerships as of May, 28th.
With the successful integrations, Algebra Integral has managed to achieve approximately $30M in Total Value Locked (TVL) and a peak trading volume of $43M, maintaining a steady presence across the integrated networks.
Strategic Partnerships with DeFi Product Teams
The strategic partnerships around Integral also extend to specialized teams focused on developing innovative products for DeFi. Currently, this network includes Brokkr Finance, Brevis, SwissTronic, and Carrot.eth; and the list is going to grow. These collaborations aim to enhance the variety of available plugins by leveraging established DeFi solutions, thereby expanding the functionality and versatility of DEXes powered by Algebra Integral.
Benefits for DEXes
Algebra Integral technology offers DEXes a host of benefits, leading to increased TVL, trading volume, and overall efficiency, ultimately driving revenue growth:
- Enhanced Gas Efficiency: Integral’s optimized core results in significant gas savings, averaging between 7–22% compared to Uniswap V3, and up to 80% in some cases.
- Modularity & Customizability: Through the use of plugins, DEXes can introduce new functionalities without the need for liquidity migration, enhancing competitiveness. Integral’s customizability allows for optimization of performance across various blockchains.
- Expanded Revenue Opportunities: Integral unlocks diverse revenue streams by introducing plugins, enabling greater stakeholder engagement. These plugins offer avenues for innovative revenue models, such as automatic buybacks, exclusive LP fee structures, and impermanent loss mitigation.
- Productive ecosystem: the project aims to create an ecosystem of independent developers and product teams incentivized to help with the implementation of desired plugin ideas for DEXes.
Conclusion
Algebra Integral’s modular architecture is revolutionizing the DeFi landscape by introducing modular architecture for DEXes. The variety of Plugins available offers expanded functionality, catering to the specific needs of DEXes and enhancing their competitiveness. With 16 and counting integrations, our network is rapidly growing, also thanks to strategic partnerships with product developers. DEXes benefit from a significant gas economy, new revenue streams, and growing ecosystem of developers ready to support and implement nearly any plugin idea, ensuring continuous innovation and growth.
Looking to build a DEX or develop plugins for Algebra Integral? Contact the team here.
About Algebra
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, Lynex, Kim, Swapsicle, Synthswap, Hercules, Swapr, SpiritSwap, Zyberswap, Horizon, and more, Algebra propels them to higher trading volume & enhanced capital efficiency. Learn more on our website: algebra.finance.
$ALGB is the platform token of the Algebra Protocol, used for governance. Weekly buybacks & burns are aimed to reduce the circulating supply & increase the ALGB value. ALGB on CoinMarketCap.
