Frequently asked questions
Last updated: 5/1/2023
Shell is much more than a DEX. In addition to swaps, it allows users to make various other types of financial transactions like LPing, lending, or buying NFTs, that can all be batched in an atomic transaction. This lets users bundle many transactions into one, and it lets developers build complex financial apps, new financial primitives, and more efficient DEXs.
Shell Protocol is deployed on Arbitrum, an Ethereum rollup. It is EVM-compatible and may be deployed on other L2s, Ethereum mainnet, or other EVM chains in the future.
Shell is 100% non-custodial with necessary safeguards, and has been audited by the best of the best and maintains open bounties. DeFi can be inherently risky and time is the ultimate test, so all new features are released with utmost care, communication, and appropriate incentives for users.
The “sh” prefix on a token indicates that it is Shell-wrapped to interact with Shell primitives. Shell-wrapped tokens simply record a token's ownership on Shell's internal token ledger, the Ocean, instead of the token's native ledger. These tokens are held by the Ocean on an external ledger (ERC-20, ERC-721, or ERC-1155), with a proportional quantity represented on the Ocean ledger and held by the user. For example, shUSDC is USDC wrapped into the Ocean. Wrapping tokens in Shell Protocol does not affect their value (1 USDC = 1 shUSDC) and they may be unwrapped by the user at any time.
Government Toucans are an NFT collection that were mintable for free by the Shell community on April 1, 2022 and have been used for community votes.
Shell v1 (launched October 2020, retired September 2022) was an AMM tailored for trading stablecoins and holding fungible composite assets. From its launch through its retirement, and without any incentives or advertisements, Shell v1 had remained in the top 25 DEXs on Ethereum by TVL, without a security breach. Building Shell v1 taught us that the next evolution of AMMs requires DeFi architecture to be more modular and flexible. It inspired us to modularize DeFi architecture into two components, accounting logic and business logic. The current Shell Protocol introduces this new system architecture. Not only can we use it to recreate what was possible with Shell v1, but we can also build many innovative new apps with it.