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Juggler V3: A new AMM concept

After launching our Golden Tickets crowdsale (still live!), we got back to work immediately afterwards and re-focused all development efforts towards a new and highly promising AMM (plural, actually) concept idea that we believe packs more than enough potential to take the DEX sector by storm, and really quickly too.

Let’s delve right away into what the product is and why it makes for such a perfect evolution of Juggler (our V2 AMM). So, a lot of developers and users in DeFi have had their eyes watching on Andre Cronje’s latest mad experiment, Solidly, and so did we.

It’s a new take on the AMM genre, its engine resembles a merge between Uniswap V2 and Curve Finance (with a modified curve from Stableswap, especially suited to forex pairs besides closely correlated assets) own. In turn, this introduces the concept of Stable and Volatile pairs, made up respectively of correlated and uncorrelated assets.

However, it’s not there that lie its core innovations. Solidly’s rethinks the very incentives ,as popularized by Uniswap V2, that have sit undiscussed at the center of liquidity providing in virtually any AMMs thereafter. Now, the core protocol incentives are shifted to focus away from maximizing liquidity itself and towards maximing fees generation instead.

It’s a profoundly significant economic change in the old AMMs incentives design and a bet that opens up a whole array of so-called “flywheels effects” that so many DeFi protocols are so obsessively (and rightly so) after.

Its own tokenomics, takes aim and leverage at least one of these (and do so in a very elegant and modern way), you should read more about it (and don’t come back until you mastered it!):

In parallel to adapating the Solidly contracts codebase to serve as the indispensable backbone for Juggler V3 contracts, we have also taken a curious look at the ZipSwap contracts and whitepaper, which has undoubtedly fascinated Optimism users with extreme L2-optimized swaps, made possible by a yet secretive Router contract 🤫.

Luckily for us, Barnaby figured it out, and lo and behold we were able to incorporate those in Juggler as well!

Without further addo, here’s a quick rundown of the features that Juggler V3 offers:

  • Highly gas-optimized L2 add/remove/swap Router operations (removed 99%+ of the average UNI_V2-compatible op calldata)

  • 0-upkeep, 30-minute TWAPs. This means no additional upkeep or integration efforts are required, protocols will be able to source quotes directly from the pairs contracts

  • Fees splits: fees do not auto-accrue, this allows external protocols to be able to build advanced integrations on top of the underlying protocol fee claiming system

  • Native Bribing support. Bribes work hand-in-hand with Gauges

  • New curve: x3y+y3x, which allows for extremely efficient stable swaps

  • Curve quoting: y = (sqrt((27 a^3 b x^2 + 27 a b^3 x^2)^2 + 108 x^12) + 27 a^3 b x^2 + 27 a b^3 x^2)^(1/3)/(3 2^(1/3) x) - (2^(1/3) x^3)/(sqrt((27 a^3 b x^2 + 27 a b^3 x^2)^2 + 108 x^12) + 27 a^3 b x^2 + 27 a b^3 x^2)^(1/3)

  • Automatic routing through both stable and volatile pairs

  • Flashloan-proof and agnostic reserves quoting

  • Governance minimization: the protocol is immutable and economically self-sustainable thanks to its market partecipants.

Furthermore, Juggler V3 mantains perfect compatibility with the best and most familiar AMM concepts, such as:

  • Lazy LP management

  • Fungible (ERC-20) LP positions

  • Chained swaps to route between pairs

  • priceCumulativeLast that can be used as external TWAP

  • Flashloan proof TWAPs

  • Direct LP rewards via skim

  • xy>=k

Launch

While the contracts are already production ready and only waiting for mainnet deployment, as we did for the Crowdsale, we are also planning to release Juggler V3 in stages (precisely 2), for the following reasons:

  • Our Svelte wizard dev, 0x25cfb68, is currently still crafting a beautiful web3 UI/UX that is worthy of the many innovations in the new contracts

  • We wish to leverage the 1st phase as an initial fair distribution mechanism for the protocol reward and governance token: 🤹 Balls (BALLS)

So, what are these two phases?

AMMs Core

In this phase, we will deploy the AMMs core contracts:

  • JugglerV3Pair

  • JugglerV3Fees

  • JugglerV3Factory

  • JugglerV3PairRegistry

  • JugglerV3Router01, JugglerV3Router02

This, as soon as UI readiness allows, will make the exchange protocol fully usable and will be used to determine (rolling snapshot) how many BALLS each user will be airdropped once Phase Two rolls out.

We will publish details about the BALLS tokenomics, as well as the initial distribution weights in a separate post.

Rewards and Governance

In this phase, the rest of the contracts is deployed. This involves the rewards and governance layers:

  • Juggling Balls

  • VeJugglingBalls

  • JugglerV3GaugeFactory

  • JugglerV3BribeFactory

  • JugglerV3Voter

  • JugglerV3Minter

  • VeFeesDistributor

Phase One participants are airdropped their veNFT allocations based on their LP snapshots records.

We will publish details about the rewards and ve-governance systems in a separate post.