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Overview

Work in progress

This documentation is a work in progress and subject to change.

Warren overview

Warren is a revolutionary Automated Market Maker (AMM) that introduces several groundbreaking features to optimize liquidity provision and maximize profits for liquidity providers (LPs). Building upon the concept of ticks from Uniswap v3, Warren introduces a new paradigm in decentralized exchange technology.

Features​

  1. Liquidity Density Functions (LDFs): Enable efficient liquidity distribution, modification, and swaps with constant gas costs.
  2. Shapeshifting: Allow LPs to provide liquidity in complex shapes and seamlessly shift or switch between these shapes, either manually or programmatically.
  3. Autonomous Rebalancing: Eliminate the need for external keepers to maintain optimal token ratios.
  4. Surge Fee: Protect against sandwiching attacks during autonomous liquidity modifications.
  5. Rehypothecation: Utilize idle assets to earn additional yield from external protocols.
  6. am-AMM: Recapture MEV and optimize swap fee revenue using an auction-managed mechanism.
  7. Volatility-based Swap Fee: Dynamic fee model based on price volatility.
  8. Auto-compounding: Automatically compound swap fees back into the liquidity position.
  9. veToken Incentive System: Allow anyone to deploy incentives to pools and also incentivize liquidity through Warren veToken Incentive System.
Built on Bunni V2

Warren's AMM execution layer reuses Bunni V2 — LDFs, am-AMM, shapeshifting, rebalancing, surge fees, rehypothecation, and hooklets. Warren adds an incentives layer (WRN, bWRN, gauges, bribes) on top. Full credits on the Acknowledgements page.

Why Warren?​

Warren addresses several shortcomings of previous AMM designs, particularly Uniswap v3:

  • Complex liquidity shapes can now be created and managed with a single position, rather than multiple positions.
  • Liquidity can now be efficiently moved or reshaped without removing and recreating positions.
  • Swap gas costs are now constant, regardless of the number of ticks crossed.
  • Swap fees are now auto-compounded back into liquidity, rather than requiring users to manually claim & compound.