Protocol Onboarding

Overview

Protocol onboarding involves integrating new DeFi protocols, exchanges, and liquidity sources into the solving infrastructure. The system provides a unified abstraction layer that enables seamless integration of diverse protocols while maintaining high performance and consistent behavior across different implementations.

Using our Solution

Our protocol onboarding system enables:

• Multi-protocol Support: Seamless integration of Uniswap V2/V3/V4, Balancer, Curve, SushiSwap, Pancakeswap, and more
• Unified Interface: Protocol-agnostic pool representation through Tycho's component and state model
• Performance Optimization: Efficient routing and execution across all integrated protocols
• Flexible Configuration: TVL-based filtering and protocol-specific optimizations
• Extensible Framework: Easy addition of new protocols without architectural changes

Solution Overview

The protocol onboarding system leverages Tycho's protocol abstraction where "a pool is a pool is a pool" regardless of the underlying protocol implementation. This abstraction dramatically simplifies the integration of new protocols while maintaining consistent performance characteristics.

Supported Protocols

Current Integrations

• Uniswap V2/V3/V4
• Balancer V2
• Curve
• Sushiswap V2
• Pancakeswap V2/V3
• Ekubo V2

• Uniswap V2/V3

• Uniswap V2/V3/V4

Protocol Abstraction Layer

The system uses Tycho's component and state model to provide uniform protocol representation:

#[derive(Debug, Clone)]
pub struct CompactEdge {
    pub pool_id: u32,
    pub token_out: u32,
    pub protocol: u8, // 0=UniV2, 1=UniV3, 2=UniV4, etc.
    pub fee_bps: u32,
}

This abstraction enables:

• Consistent Routing: Same algorithms work across all protocols
• Unified State Management: Standardized pool state representation
• Protocol-agnostic Optimization: Route optimization independent of underlying protocol

Technical Reference

Onboarding Process

Step 1: Protocol Integration Assessment

• Technical Requirements: API compatibility, state management, fee structures
• Liquidity Analysis: TVL requirements, pool distribution, trading volumes
• Performance Impact: Gas costs, execution complexity, optimization potential

Step 2: Tycho Integration

• Substream Development: Create protocol-specific substreams for real-time indexing
• State Model Definition: Define pool state structure and update mechanisms
• Component Mapping: Map protocol-specific concepts to Tycho's unified model

Step 3: Protocol Configuration

pub struct ProtocolConfig {
    pub protocol_id: u8,
    pub name: String,
    pub min_tvl_eth: f64,
    pub supported_chains: Vec<Chain>,
    pub fee_structure: FeeStructure,
    pub gas_overhead: u64,
}

Step 4: Route Integration

• Graph Building: Add protocol pools to the unified liquidity graph
• Flash Loan Compatibility: Assess compatibility with existing flash loan providers
• Route Optimization: Protocol-specific optimizations and constraints

Step 5: Testing and Validation

• Simulation Testing: Comprehensive route simulation across test scenarios
• Performance Benchmarking: Measure impact on system performance
• Production Validation: Gradual rollout with monitoring and validation

Protocol-Specific Considerations

Uniswap V4 Integration

Special considerations for V4 integration:

• Hook Compatibility: Custom hook development for intent-based solving
• Pool Manager Integration: Leverage singleton architecture for efficiency
• Flash Loan Optimization: Near-zero fee flash loans (0 bps vs 30 bps for V3)

Balancer V2 Integration

• Weighted Pool Support: Handle various pool weights and compositions
• Stable Pool Optimization: Optimized AMM curves for stablecoin pairs
• Multi-token Pools: Support for pools with more than 2 tokens

Curve Integration

• Stable Pool Math: Specialized algorithms for stable swap calculations
• Metapool Support: Handle complex metapool structures
• Administrative Fees: Account for protocol-specific fee structures

Performance Optimization

Protocol Selection Strategy

The system automatically selects optimal protocols based on:

1. Liquidity Depth: Prefer protocols with higher liquidity for given pairs
2. Fee Structure: Optimize for total cost including protocol fees and gas
3. Execution Efficiency: Consider gas costs and execution complexity
4. Flash Loan Compatibility: Prioritize protocols compatible with chosen flash loan provider

TVL-Based Filtering

Each protocol is configured with minimum TVL requirements:

Multi-Chain Support

Chain-Specific Optimizations

• Gas Price Optimization: Chain-specific gas price strategies
• Block Time Adaptation: Adjust timing for different block intervals
• Bridge Integration: Support for cross-chain route discovery

Deployment Strategy

1. Single Chain Validation: Thorough testing on individual chains
2. Multi-Chain Rollout: Gradual expansion across supported chains
3. Performance Monitoring: Continuous monitoring of cross-chain performance

Integration Examples

Example: Adding a New AMM Protocol

1. Substream Development:

// Protocol-specific state extraction
pub fn extract_pool_state(log: &Log) -> Result<PoolState> {
    // Parse protocol-specific events
    // Convert to unified state representation
}

2. Protocol Registration:

let new_protocol = ProtocolConfig {
    protocol_id: 8,
    name: "NewAMM".to_string(),
    min_tvl_eth: 5.0,
    supported_chains: vec![Chain::Ethereum, Chain::Base],
    fee_structure: FeeStructure::Fixed(30), // 0.3%
    gas_overhead: 150_000,
};

3. Route Integration:

// Automatic integration into existing route discovery
// No changes needed to core routing algorithms

Best Practices

Integration Guidelines

• Start Small: Begin with single chain, limited TVL requirements
• Monitor Performance: Track impact on system-wide performance metrics
• Gradual Scaling: Increase TVL requirements and chain coverage progressively
• Documentation: Maintain comprehensive integration documentation

Performance Considerations

• Gas Efficiency: Prioritize protocols with efficient execution
• State Synchronization: Ensure real-time state updates for accurate routing
• Error Handling: Robust error handling for protocol-specific edge cases
• Fallback Mechanisms: Implement fallbacks for protocol downtime or issues

Protocol Roadmap

Planned Integrations

• Layer 2 Expansion: Arbitrum, Optimism, Polygon zkEVM
• Alternative AMMs: Solidly, Aerodrome, Velodrome
• Concentrated Liquidity: Additional concentrated liquidity protocols
• Order Book DEXs: Integration with hybrid AMM/order book protocols

Future Enhancements

• Cross-Chain Routing: Native cross-chain route discovery and execution
• Intent Networks: Integration with emerging intent-based protocols
• Advanced Hooks: Custom Uniswap V4 hooks for specialized use cases
• Yield Optimization: Integration with yield-bearing protocols