Intro to Shell

The best place on the EVM

What is Shell Protocol?

Shell Protocol is a set of EVM-based smart contracts on Arbitrum One. Unlike other DeFi protocols that rely on monolithic, single-purpose smart contracts, Shell is a hub for a modular ecosystem of services. Its design makes it much simpler to bundle several smart contracts or build new ones, and for users to batch many services in one transaction.
Known for simplifying DeFi for both users and developers, Shell is a public resource to be governed by the upcoming Shell DAO.
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Why Shell Protocol?

  • Shell Protocol lets you atomically combine any set of transactions, like LPing, lending/borrowing, or making multi-token and NFT swaps—all while significantly reducing gas fees.
  • Shell’s native AMM engine, Proteus, lets you use or create custom pools with concentrated liquidity and fungible LP tokens, and dramatically increases bonding curve precision. Well-designed curves capture significantly more trade volume than the competition.
  • Shell is the home for clean, modular DeFi contracts: Its design reduces code complexity for builders and improves user experience.

Architecture Overview

Shell Protocol has two major components:
  • The Ocean: a shared accounting system for easily composing DeFi primitives
  • Proteus: an AMM engine that can precisely replicate any bonding curve shape while using fungible LP tokens

History of Shell v1 (Retired)

In October of 2020, Shell Protocol launched its first-ever AMM pools on Ethereum mainnet, known as Shell v1. They were a novel approach to a particular set of problems, offering deep liquidity and (presciently) broken peg protection for like-value tokens (such as stablecoin-stablecoin or wrapped BTC-wrapped BTC). Unfortunately Shell v1 was unique in offering broken peg protection, otherwise more protocols may have been able to mitigate damage caused by the great stablecoin crash of 2021.
A visionary product in many ways, Shell v1 also contained the seeds of an ambition for a composable liquidity network — an ambition now borne out by its v2 successor (known simply as Shell Protocol). As such, after nearly two years of active life, Shell v1 has transitioned into a graceful retirement.