We have recently released the first phase of Trident, the constant product pool is now live on Polygon. You can read more about phase 1 in this blogpost.
As a reminder, Trident intends to be a production framework for building and deploying AMMs (built on top of the BentoBox), it is not just an AMM itself. While AMMs can be created using the Trident code, there isn’t a specific AMM at the center of Trident. The concept behind this framework is that hard-coded swap environments like those found in Uniswap, Curve, and Balancer all necessitate the same underlying methods, and can therefore, be consolidated into a single interface. This interface, is something we call the IPool interface.
Next to the Constant Product pool that’s currently for preview on Polygon right now. The team has three additional pool types in the pipeline still (Concentrated, Stable, and Index pools). These pools are like a starter set for the DAO to prove what is possible using IPool.
Constant Product Pool
Constant Product Pools (AMMs) are pools that DeFi users are most familiar with, where trading happens between two assets over the x*y=k constant product formula. In this pool, liquidity providers own both of the pool’s assets in a 50:50 ratio. They are the most “unbiased” automated market maker, as well as the original AMM used in SushiSwap V1. They’re sometimes referred to as “lazy LPs”.
‘Constant Product’ pools are composed 50% of one token and 50% of another. They’re best for pairing tokens that are unpredictable. For tokens with predictable, high-volume events, usually the ‘Concentrated’ pools are best because they allow liquidity providers to capture high fees, and for token pairs with predictable, stable prices, the ‘Stable’ pools are usually best, because they allow users to swap with the lowest slippage. All in all, ‘Constant Product’ pools are the easiest and most general purpose pool to interact with.
Trident Constant Product Pool
With Trident we have been able to make several optimizations to the traditional Constant Product Pool, making swaps much cheaper for the user. This pool is our most “gas optimized” pool, where swaps are up to 25% cheaper than swaps on the existing legacy Sushi Constant Product Pool. In the legacy AMM swaps were often time more expensive than elsewhere due to various reasons:
- Inefficient swapping routes and therefore increasing gas price. Now you can choose how you do your swaps: from your ‘Wallet <-> Wallet ’ is the least efficient and the most expensive option. Swapping from ‘BentoBox <-> BentoBox’ directly is the cheapest option and from ‘Wallet <-> BentoBox’ or vice versa will be anywhere in between.
- Lack of choice in fee tiers Before, the LP swap fee was set at 0.3% by default. Now, they’ll have the option to choose swap fees between: 0.3%. 0.1%, 0.05% or 0.01%. For swap users, our Tines routing engine will route through the best pools based on price impact and fees.
- TWAP (Time Weighted Average Pricing) support on pools that did not need it. We can now create pools without TWAP support for tokens that have external oracles e.g. Chainlink.
Additionally, the Trident Constant Product Pool supports a native zap-in, through which liquidity can be added in any ratio of the two tokens. E.g. you’ll be able to add liquidity that is not exactly 50:50 per token pair. You can do 100% of a single token pair or any combination in between!
BentoBox is a token vault, which is highly gas optimized, it utilizes virtualized balances to allow for idle funds to be utilized in strategies to achieve a high level of capital efficiency. Learn how to deposit funds into BentoBox here.
Because Trident is a framework, if the team decides to add a new pool type themselves, they can do this much more easily, without having to re-deploy a new codebase with each new pool. When new pools are whitelisted and deployed on Trident, they continue to exist within the Trident framework, which means they collect fees for xSushi holders. As well, any outside developer can use Trident to create custom AMMs by extending the IPool interface in their pool contracts, and launch them in the Trident framework. Any pool type that passes an audit and an internal review is eligible to be whitelisted and deployed on Trident.
Next to the Constant Product pool that’s currently for preview on Polygon right now. The team has three additional pool types in the pipeline still (Concentrated, Stable, and Index pools). They will be released in the order that the audits (and available resources) make them available.
If you have any questions please hop into the Sushi Discord so one of our Samurais can assist you: click to join Discord.
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