Monthly Recap — November ‘23
Contract Re-Audit, DeltaSwap, Staking UI, Preparing for TGE
November was a month for heads down building as we focus on re-deployment and build out of other core protocol features. Therefore, this monthly update will be exclusively focused on product.
We finished the audit of DeltaSwap, the first fee-less swap AMM with minimal remediations. We’re around 80% done with the staking & farm UI after a successful audit of the staking contracts. Finally, we prepared pre-audit forms and discussion of the bug fix with our auditor Zellic.
The re-audit of the GammaSwap contracts is scheduled to begin today at December 4th and will likely take seven to fourteen days before it is completed. A post mortem will come after the audit is successfully finished.
DeltaSwap Pools & Swap UI
DeltaSwap, the first AMM without swap fees, has been fully audited and is live on Arbitrum Goerli for testing by the GammaSwap Labs core team.
How does DeltaSwap charge no swap fees? The same way GammaSwap wrapped pools on Sushi are able to offer a higher yield than the underlying AMM: by compensating Liquidity Providers with borrowing fees.
In DeltaSwap, the yield for Liquidity Providers will be exclusively from borrowing fees. Why?
- LP AMM yield scales directly with Impermanent Loss risk
- The trend in equities is for fees to be competed to 0. After Robinhood launched commission free trading, most other online brokers followed the trend — eToro, Charles Schwab, Fidelity. We are also seeing fees being competed to 0 in crypto (UniV2 charged 30bps, highest volume UniV3 pool charges 5bps). DeltaSwap is front running the competition by releasing the first 100% fee-less spot DEX.
- Lower latency CEX<>DEX pricing because DeltaSwap is cheaper to arbitrage therefore price matching across exchanges will be more efficient
Here is a preview of the Swap UI — price impact is also looking quite competitive 👀
The launch of DeltaSwap will occur within the coming month or two along with the $GS TGE.
The core team is implementing the Staking UI after a successful audit of the smart contracts. The GS token can be staked for esGS, ETH fees and MP points — similar to GMX but with an interesting twist.
More on this in our two part tokenomics series coming this week.
Finally, of course, once we redeploy, we will enable users to Migrate Liquidity from the legacy contracts with a simple click of a button.
We have made the decision to re-launch with upgradeable contracts moving forward, previously they were non upgradeable. Why? Our smart contract codebase is quite large and complex — it may require bug fixes in the future. With more substantial liquidity after the launch of $GS, pausing for two months and migrating could be costly.
Instead of a two month long hiatus, the core team could have pushed a quick patch within a week, upgraded the contracts and then implemented a more robust solution later without having to be “offline” for an extended period of time. See how Aave recently handled a bug fix requiring pausing of their contracts here and here.
It sacrifices immutability, however, the upgradeability can be renounced later. Once the contracts have been stable for two to three years, the DAO could vote to convert the smart contracts to be fully non-upgradable.
How? There is an AdminContract which controls the parameters of the protocol. An admin contract is a regular smart contract that has a specific purpose: it manages the upgradeability of other contracts within a system. The Proxy Contract is also a smart contract but is specifically designed to delegate its functionality to another contract (usually an implementation contract) where the core contract functionality lives.
The AdminContract is also ownable, initially by the DAO multisig. Only the owner of the AdminContract can call the function in the AdminContract that upgrades the proxy to the new contract. This ownership can be renounced to address zero over time.
In conclusion, the GammaSwap Labs core team has been working on a bunch of projects in tandem: preparing for re-deployment, launching DeltaSwap and staking to support TGE.
We are so excited to re-launch with a bang💥