Core Mechanism
Last updated
Last updated
is an advanced solution of the previous Algebra V3 version that focused on improving the concentrated liquidity model introduced by Uniswap V3, addressing key challenges and enhancing user experience for LPs.
The new mechanism introduces custom plugins to DEXes, offering unmatched flexibility and innovation.
Algebra Integral functions as a concentrated liquidity engine with a modular architectural approach. This design divides its core components into two distinct parts:
The Core Codebase: The foundational engine that upholds the core principles of AMM functionality.
Plugins: Independent smart contracts that connect liquidity pools for external DEXs integrating the Algebra engine.
The plugins add flexibility to the design, allowing developers to introduce additional functionality. They can be updated, replaced, or removed either collaboratively within a team or via governance mechanisms such as DAOs.
Algebra’s modular architecture not only provides pre-built plugins but also empowers developers to create custom plugins, further enhancing the possibilities for integrations.