Decentralized liquidity aggregator & lending platform
By Vestige by Grzegorz Raczek (@grzracz), Erik Hasselwander (@ErikHasselwander), Mariano Dominguez (@BunsanMuchi), David Blazek (@Zykoz) • Session 2 • Awarded 12/10/2023
About the Proposal
This proposal features three distinct components designed to increase volume and access to liquidity across the Algorand ecosystem. - Integrating Stableswaps and Lending Markets into the Vestige Aggregator, as well as open-sourcing the routing smart contract - Establishing a fully decentralized on-chain aggregator for new dApps to utilize the available liquidity on Algorand - Developing a comprehensive lending platform that leverages existing liquidity for all actions, driving volume towards the entire ecosystem # Component 1: Stableswap and Lending Markets Aggregator Integration We will integrate stableswaps into the Vestige aggregator, enabling tokens like gALGO to have greater utility by providing instant access to swap from gALGO to any other asset in the ecosystem with minimal slippage. This will be achieved by utilizing highly liquid stableswap pools. This milestone also covers integrating Folks Finance lending pools into the Vestige aggregator. These integrations play a pivotal role in optimizing liquidity utilization for bridged and stable assets, leading to a significant reduction in price impact. A 10000 ALGO swap to goBTC through our router nets you over a percent more than doing a single swap, and these integrations will boost this number a lot. This grant will enable us to open-source the smart contract used for the routing, equipping other developers with the necessary tools to create their own complex swap transactions without reinventing the wheel concerning cfAMM swaps, stableswaps and lending market integrations. # Component 2: Fully Decentralized Liquidity Aggregator This component is a fully on-chain, decentralized liquidity aggregator. This on-chain tool will be callable from other dApps, allowing developers to tap into on-chain liquidity programmatically without incurring significant price impact from single-pool swaps. Furthermore, an oracle-like component will be introduced to track on-chain liquidity over time, enabling smart slippage during transaction execution and preventing frontrunning or MEV-like attacks. # Component 3: Decentralized Lending Platform The third component is a fully decentralized lending platform, offering a variety of lending and borrowing options for specific on-chain assets. This protocol will exclusively tap into existing AMMs for managing loans, repayments, and liquidations by leveraging the decentralized liquidity aggregator mentioned earlier. This approach ensures that liquidation incentives and fees remain within the ecosystem, instead of being consumed by bots and moved off-chain, which is a current issue.
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Milestones
Proposal Planning
Define proposal scope and requirements
Completed: 11/24/2024
Phase 1
Implement core functionality for phase 1
Completed: 12/24/2024
Phase 2
Implement core functionality for phase 2
Completed: 1/23/2025
Final Delivery
Complete all deliverables and documentation
Completed: 2/22/2025
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Proposal Summary
Team
Vestige by Grzegorz Raczek (@grzracz), Erik Hasselwander (@ErikHasselwander), Mariano Dominguez (@BunsanMuchi), David Blazek (@Zykoz)
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