The Protocol - AMM V3
Last updated
Last updated
MorFi implements to enable a seamless integration of custom plugins, reduce gas costs, and provide a powerful solution to address the evolving needs of Morph’s DeFi ecosystem.
Algebra Integral is an innovative Concentrated Liquidity Automated Market Maker (AMM) that introduces a modular architecture to enhance the performance and flexibility of MorFi.
Modular Architecture Algebra Integral's modular design allows MorFi to easily integrate, remove, or update plugins without requiring liquidity migration. This capability reduces operational disruptions and minimizes gas costs, ultimately providing a better user experience.
Customizable Plugins This modular approach supports a wide range of plugins, such as:
Dynamic Fee Plugin: Automatically adjusts fees based on market volatility, optimizing earnings for liquidity providers
On-chain Farming Plugin: Enables farming directly within MorFi, enhancing profit opportunities without relying on external platforms
Limit Orders Plugin: Facilitates limit orders that execute automatically when specified price conditions are met, providing users flexibility in their trading logic
Oracles for TWAP and Volatility: Provides tools for accessing historical data and calculating daily price volatility to support advanced trading strategies
Single Pool per Pair Architecture: Ensuring that each token pair has a single liquidity pool minimizes liquidity fragmentation, making it easier to find optimal swap routes and improving capital efficiency across MorFi.
Security and Flexibility: By moving secondary functionalities into plugins, Algebra Integral keeps the core of the protocol lightweight, enhancing its security and simplifying the audit process.
As a result, MorFi offers the following advantages:
Gas Cost Savings: Improved gas efficiency by 7-22%, on average, compared to traditional models
Concentrated Liquidity: Liquidity providers can concentrate their capital within specific price ranges, leading to increased liquidity at preferred prices
Enhanced Functionality: Easy integration of new features and plugins to adapt to market conditions without major infrastructure changes
Greater Security: A more secure trading environment that protects user assets while allowing for continuous development and updates
By leveraging the latest AMM architecture, MorFi offers a superior trading experience that is both user-friendly and flexible to changing market demands.
