Forum Tag: phase-1
Status: Draft
Author: Hesham Aly, Ryze Protocol Co-Founder
Duration: Open-ended
Summary
Proposal to integrate Ryze Protocol’s Smart-Shielded Pools (SSPs) into the 1inch DEX Aggregator on the Base network. Ryze Protocol is a next-generation liquidity engine designed to eliminate impermanent loss (IL) from price drift and deliver CEX-grade execution, offering 1inch users increased trading efficiency, especially for larger trades.
Abstract
Ryze Protocol is building a decentralized exchange on Base utilizing a novel Smart-Shielded Pool (SSP) architecture. SSPs use oracle-synced pricing, dynamic fees, and trade slicing protection to protect Liquidity Provider (LP) capital, resulting in indicative 25%-40% LP APRs paid out entirely in USDC, with zero IL from price drift. This design allows Ryze to offer CEX-Parity Pricing and highly competitive all-in quotes, making it a powerful source of liquidity to offer the best swap rates on the Base network. We propose starting the technical dialogue now to ensure a seamless integration upon our mainnet launch.
Motivation
The primary goal of this proposal is to enhance the quality of execution and liquidity available to 1inch users on the Base ecosystem.
Current AMMs face two major issues that compromise aggregation efficiency:
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High LP Leakage: Impermanent Loss and slippage leakage (captured by bots) result in shallow, temporary liquidity.
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Poor Execution: Lack of capital efficiency and toxic flow protection leads to worse fills, especially for large traders who are primary 1inch users.
Ryze Protocol’s SSPs solve these problems, making it a valuable addition to the 1inch aggregation set:
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Best-in-Class Pricing: Our dynamic architecture is designed to drive real value for users on aggregator routes due to CEX-Parity Pricing.
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Deep, Sticky Liquidity: By eliminating IL from price drift and converting slippage into yield, Ryze attracts deep, sticky LP capital, which translates directly into better quotes for 1inch.
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Future Market Scope: Ryze’s unified liquidity structure is designed to be the first on Base to scale to FX pairs and Commodities, offering 1inch access to markets currently unavailable in DeFi.
Specification
The integration requires 1inch’s smart routing algorithm to interact with Ryze Protocol’s SSP contract interfaces on the Base network.
Component & Technical Details
Network - Base (L2)
Pool Architecture - Smart-Shielded Pools (SSPs)
Key Mechanism - Oracle Pricing, Trade Slicing Protection, Dynamic Fee Stack.
Functionality - Standard swap function will execute trades against the SSPs.
Trade Execution - Trades are executed against the unified liquidity pool for the specified pair. The pool dynamically adjusts fees based on trade size and pool imbalance (Weight-Breaking Fees/Weight Recovery Rewards).
Integration Point - 1inch router needs to interact with the Ryze Protocol Exchange contract, which handles all swapping logic and fee calculations. The contract addresses will be provided upon full deployment.
Security Audit - Ryze Protocol is committed to a top-tier security audit (e.g., Hacken, a Base-preferred auditor) upon completion of the platform. The audit results will be made public and submitted to the DAO as part of the formal integration process.
Current Status - Ryze Protocol is deployed on Base Testnet; Mainnet launch is planned for Q1.
Benefits
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Superior Execution for 1inch Users: Ryze SSPs provide slippage as low as 0.05%-0.2%, highly competitive with centralized exchanges, resulting in significantly better fills for 1inch users, especially for high-value trades.
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Attracts Large-Scale Trading: Capital-Protected liquidity design attracts large-scale LPs, deepening the liquidity available to 1inch, and the ability to handle large orders with CEX-parity pricing attracts large traders.
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Future-Proof Aggregation: Ryze is built to integrate non-crypto assets (FX/Commodities), positioning 1inch to be the first aggregator to route large volumes on these new DeFi markets on Base.
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Security & Fairness: Ryze’s Trade Slicing Protection ensures fair fees are paid, preventing fee bypass strategies and protecting LP capital, leading to more resilient and stable pools.
Drawbacks
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Custom Integration: Since the SSP architecture is not a fork of standard AMMs (e.g., Uniswap v2/v3). The integration of Ryze’s contract logic will require a normal code review (ie. ensuring the routing algorithm correctly interprets the dynamic fee structure and pricing) without any additional technical work for the 1inch team.
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Pre-Launch Status: Ryze is currently on Testnet. While this discussion is proactive, the final integration cannot occur until a full audit is completed and the protocol is deployed to Base Mainnet.