What is Ekubo Protocol? Ekubo Protocol is a protocol that builds a centralized liquidity model on StarkNet. Although liquidity on the project was only integrated into AVNU in mid-September 2023, the protocol currently supports tens of millions of dollars every day.
So what is Ekubo Protocol? Where is the highlight of Ekubo Protocol? Let’s find out in this article!
Ekubo Protocol Overview
What is Ekubo Protocol?
Ekubo Protocol is a centralized liquidity protocol built to support DEXs using AMMs on StarkNet. Centralized protocol attracts liquidity with a state-of-the-art centralized liquidity model to power prices for integrated DEXs. Still “Ekubo” is a name that comes from the character Dimple in anime Mob Psycho 100.
Liquidity pools on Ekubo are managed in a single contract, and when swapping with a pool or updating a position on Ekubo, the token transfer is postponed until the end of the transaction. In fact, you don’t have to transfer tokens at all. Aggregators can save them in Ekubo for later use, avoiding costly token transfers altogether.
The extension allows third-party developers to create new types of groups on Ekubo permissionlessly, integrating into the same ecosystem of aggregators and interfaces built on Ekubo. These teams can implement new features like oracles or new order types like limit orders or TWAMM orders.
Because Ekubo only builds liquidity and does not provide a Swap interface for users. So other DEXs can integrate Ekubo as a source of liquidity and pricing for trading. AVNU is the first DEX on StarkNet to integrate liquidity from Ekubo.
Mechanism of action
Like Uniswap V4 nice Ambient Finance, Pools are integrated into a single Smart Contract which helps reduce liquidity fragmentation because for each liquidity pair only a single Pool is needed. And reduce transaction fees when routing through multiple pools.
For example: Nam wants to use 100 USDT to buy the CUCCU meme, but on Ekubo there is no Pool for the CUCCU-USDT pair, only the ETH-USDT pair and the ETH-CUCCU pair. So Nam’s transaction is done through those 2 Pools with the routing asset being ETH. Specifically, Nam’s 100 USDT is transferred to the ETH-USDT Pool, then Flash accountant calculates based on the price to determine how many CUCCU Nam will receive and Nam will receive that amount of CUCCU from the ETH-CUCCU Pool. During the transaction process, assets from the ETH-USDT Pool will not be transferred to the ETH-CUCCU Pool, it only takes one transaction to receive the assets so the transaction fee is very cheap. With this optimal mechanism, projects do not need to create multiple pools for their Tokens, contributing to liquidity concentration.
Ekubo uses a centralized liquidity model, allowing market makers provide liquidity within a specified price range. Each liquidity provider chooses the exact parameters for their position, but all positions in the pool are aggregated from the swapper’s perspective. As a result, swappers receive better prices because liquidity providers can leverage leverage over a range of prices or sword profit from unused capital elsewhere.
When withdrawing liquidity from Ekubo, you pay a fee equal to the swap fee of the selected pool from your principal.
Development Roadmap
- Late August 2023: Mainnet Closed Beta Launch
- September 14, 2023: Mainnet Beta version launched.
- August/September 2023: Live aggregators: AVNU live 9/14/23, Fibrous live 9/24/23.
- Late October 2023: Limit order support.
- Q1 2024: Launch of TWAMM orders.
Core Team
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Investors
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Tokenomics
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Exchanges
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Ekubo’s Information Channel
- Website: https://ekubo.org/
- Twitter: https://twitter.com/EkuboProtocol
- Discord:
Summary
Ekubo is an AMM that combines many advanced market technologies of centralized liquidity, Limit Order and Smart Contract containing all Pools. The project is the most prominent DEX in the StarkNet ecosystem at the present time. Every day, Ekubo provides liquidity for tens of millions of dollars in transaction volume, a very large volume for a young ecosystem like StarkNet.
So I have clarified what Ekubo Protocol is? Hope this article brings you a lot of useful information!
