How Ekubo Is Pioneering Innovation on Starknet
Concentrated Liquidity, Modular Architecture, and a Fair Game for LPs
Starknet is built for new innovative use cases and we see more and more teams building next-generation apps that are impossible on a legacy architecture.
We are grateful that the most talented and experienced builders are digging on Starknet. One of the most brilliant minds, Moody (the core dev of Uni v3&v4), just launched Ekubo on Starknet. Ekubo is spearheading advancements in AMMs on Starknet. By combining concentrated liquidity, a unitary architecture, and expandable modules, Ekubo provides degens with optimal swap execution and liquidity suppliers with better APR.
State of DeFi
As an LP provider, you hate the risks that come with when you have to provide liquidity across the entire price curve. It's like throwing a party and not knowing who’ll show up. You’re exposed to every price fluctuation, which usually ends in impermanent loss.
If you’ve been a passive liquidity provider in traditional AMMs, you might wonder why you didn’t just stick to holding your assets spot long. In rl, passive providers often find themselves on the losing end of arbitrage trades, a cornerstone of most AMMs. It’s like being the last one picked in football, no fun, and usually, no profit.
All these problems make Takers hyperactive and creative, everyone just times their liquidity provisions just right to earn fees. A broken, not scalable system.
Steady lads, AMMs just need to innovate.
The Benefits of Concentrated Liquidity
With its focused liquidity feature, Ekubo enables tighter spreads by granting liquidity providers the ability to restrict orders to a specific price range. This not only offers enhanced rates for swappers but also allows liquidity providers to employ capital more efficiently. The downside for more capital efficiency and potentially higher returns often comes with increased complexity. Still, on Ekubo you don’t need a Ph.D. in Astrophysics to add liquidity and choose the range. Test the app! The complicated stuff is abstracted away and easily explained, and it also tells you the capital efficiency versus a full range position with the same amount of principal.
Advanced Features for Degens
Ekubo’s unitary design bundles transactions to optimize gas fees. In simpler terms, the unitary architecture means all pools are controlled in one single contract, making transactions more cost-effective by minimizing required token transfers.
Lets speak about some more very unique features of Ekubo. Ticks, Tick & Spacing Flash Accounting will make true degens happy.
Ekubo introduces "ticks" and "tick spacing" for precise price range settings. Ticks allow liquidity providers to set specific price points, and tick spacing optimizes the cost of swaps based on asset volatility.
Flash accounting enables internal token balance management before actual transfers, saving on gas fees. This feature also allows for free flash loans within the Ekubo ecosystem. Many perks for advanced onchain traders. With these gimmicks, you have a full set of new possible trading strategies that are not possible on any other farm.
The Modular Architecture of Ekubo
The real power of modularity comes into play when third-party devs get involved. With Ekubo's open architecture, devs can create new types of pools with unique features, from simple but on DEX rare limit orders, to yield-generating strategies and full batshit financial derivatives. This makes Ekubo not just an AMM but an entire ecosystem for market makers, traders, farmers, and devs.
Ekubo is the first and only extensible AMM with concentrated liquidity. Because of its modular nature, it has the potential to become a self-evolving platform. As more devs contribute to its ecosystem, Ekubo can continuously adapt and offer new functionalities, setting it apart from static, one-size-fits-all AMMs. Can't wait to see how the ecosystem grows when extensions are used to incentivize liquidity.
With a straightforward fee structure focused on withdrawal fees equal to the swap fee to discourage liquidity mercenaries (JIT takers). This makes Ekubo stand out to liquidity providers and traders who want a predictable money flow and fair game.
Built for Starknet
Ekubo is not just a port. It was ramped up by Moody in a crazy sprint over the last few months natively for Starknet. So, Moody recently talked about Ekubo and said, 'Lots of work to be done still, but confident in saying this is the best implementation of an AMM anywhere'. Yalla!
Ekubo is tailored for market makers and liquidity providers, not end-users. It's not even building a swap interface, that's a job for aggregators like AVNU.
Ekubo with its unique features stands on the shoulders of giants. Starknet delivers scalability without compromising Ethereum’s security & decentralization. Its the best platform for this upcoming Unicorn. Unicorn? I mean, why not? It has everything it needs to full send it. Unbothered. Moisturized. Not limited by the EVM.
Live on Starknet
Currently live on the Starknet Mainnet in private beta and Starknet Goerli testnet ffa. Ekubo’s upcoming milestones for the next weeks include an audit, public mainnet launch, new order capabilities, and protocol upgrades and moar. Larping closely.
Risks to Consider
Concentrated liquidity in Ekubo requires active management and poses its own form of impermanent loss if asset prices move out of the specified range. Plus, like any DeFi platform, Ekubo is subject to smart contract bugs and regulatory gensler stuff.