Staying up to date with the latest tech is everything in Web3 these days. QuickSwap’s goal is to not only provide its users/LPs (liquidity providers) with the most advanced, flexible, and efficient solutions but also maintain competitiveness across the ever-evolving DEX landscape.
QuickSwap currently utilises the Algebra V3 dynamic fee model on the majority of its chains (i.e. Polygon PoS, Manta Pacific, Polygon zkEVM).
But there’s a new sheriff in town… introducing Algebra Integral, otherwise known as their V4 that serves as an extremely flexible model/architecture utilising plugins/hooks to take customisation and modularity to a new level.
This proposal has been introduced for the dragon community to decide if QuickSwap should launch Algebra V4 on any existing and future chains, as long as the infrastructure on each respective chain supports it.
TL;DR:
- To begin, the governance discussion on the official QuickSwap Reddit will run until Monday, March 3 at 12:30 PM UTC
- Once the Reddit discussions finish, a formal Snapshot vote will run until Friday, March 7 at 12:30 PM UTC
- Once you’ve read this entire blog post, make sure to visit the official QuickSwap Reddit discussion forum and Discord channel to share your perspective with your fellow community members
Why Is Algebra V4 A Game-Changer?
Algebra, a leading provider of AMM solutions to DEXs, released their Integral V4 modular architecture in 2023, where its core code utilises plugins/hooks to set a new standard in DeFi on protocols.
These plugins/hooks allow another protocol to build something specifically for an LP on a DEX that is more customised and specific, such as fee systems, dynamic fees, on-chain farming (and more - examples will be outlined later in this blog).
When changes are implemented to liquidity pools on a DEX (i.e. fees), these changes apply to all of the pools. However, these plugins/hooks allow DEXs to host separate LP pairs that are unique and built by different protocols, meaning these pools have different characteristics that weren’t available before.
Integral is Algebra’s own version of Uni V4 and takes things to a new level for both developers and users. Developers can use V4 plugins to add additional layers of functionality (more custom solutions), such as deleting, replacing, or updating them. Additionally, built-in farming and dynamic fee mechanisms also operate as plugins that can be adapted by DEXs (such as QuickSwap) to provide different offerings to users.
If a DEX integrates Algebra’s V4 engine, here are some of the potential benefits:
- Minimises wasted gas (~7-22% savings in gas costs - even up 80% in some circumstances) and vastly increases overall efficiency
- Opening the door to new revenue streams and optimisation for specific chains
- Expanding functionality and, as a result, making liquidity pools and basic DEX operation mechanics more advanced and flexible
- Utilising plugins for perpetuals trading, AI, liquidity locking, staking-based fee discounts, etc.
The TLDR is that Algebra V4 is next-generation technology that helps take DEX functionality to an entirely new level - and QuickSwap wants to integrate this technology across all possible chains.
How Do Plugins/Hooks Work? Diving Into The Details
Plugins interact with liquidity pools on a DEX s using Algebra Integral (V4) through hooks. Hooks are specific calls that the liquidity can make before and after users execute transactions.
If a plugin is attached to the liquidity pool and the specific call to that hook is activated, the pool will call a function defined in the Algebra plugin interface from the plugin. Within this function, arbitrary logic can be implemented in the plugin, including even interaction with the same liquidity pool. Hooks and plugins are interchangeable, meaning information can be exchanged to and from the liquidity pool.
Implications For QuickSwap
QuickSwap is ready to adopt V4 to the fullest extent and push the integration to all of its chains (where applicable). Algebra has been working behind the scenes to test its V4 tech on the QuickSwap DEX, which has operated smoothly so far.
Enabling plugins and hooks on existing and future chains that QuickSwap is deployed on would enable higher customisation for liquidity pool features for different supported token pairs. With the major phase of the bull market appearing to be on the horizon, capital will look to find its way on the DEX and projects will add more liquidity on these chains, meaning having Algebra Integral in place will be of the essence early.
Now is the time.
Proposal & Fee Details
If the community were to vote ‘Yes’ to this proposal, QuickSwap would integrate Algebra Integral (V4) on existing and future chains. Current chains where this could be applicable to are Polygon PoS, Immutable zkEVM, Manta Pacific, and Polygon zkEVM - any future chains that QuickSwap launches on will be up for consideration.
As QuickSwap continues to build upon its existing chain infrastructure and expand to new ecosystems, having a V4 integration would help it not only solidify its position but become a leader in these new environments.
All fees generated from the Algebra Integral (V4) integration via QuickSwap (on all existing and future chains) will be distributed per the most recent governance proposal/vote on the updated fee structure.
Note that the fee structure mentioned above is aligned with all previous Algebra technology integrations on QuickSwap across other chains, where the distribution according to this structure would resume and remain unchanged from existing models.
Join the Discussion
As always, QuickSwap community members are encouraged to participate in and contribute to QuickSwap governance discussions and proposals across all of QuickSwap’s online forums, especially on Reddit. As a Dragon, you are a valued community member and your opinion matters – but you have to participate in community voting procedures to make it count.
Critical decisions guiding QuickSwap’s strategic development will always be determined by way of decentralised governance. QuickSwap’s future is in your hands, so make your voice heard!