An overview of Shell's two major components
There are two major components of Shell Protocol.
- The first is the Ocean, a simpler and more efficient home for composing DeFi operations. It is three things in one: a shared multi-token ledger, a standardized accounting framework for DeFi primitives, and a smarter system for composing primitives.
- The second is Proteus, a tool that can precisely implement any trading strategy, allowing concentrated liquidity with fungible LP tokens, as well as bonding curves that can evolve over time. As an AMM engine, it allows financial engineers to design custom AMMs without ever writing a line of Solidity code.
The Proteus AMM Engine owes its flexibility to the fact that it was designed as an Ocean primitive. In other words, the first set of AMMs released using Proteus were also the very first primitives on Shell. Although the Ocean is the main hub, Proteus is a major component of Shell Protocol because of its role in creating fungible LP tokens, which are fundamental building blocks not only in many DeFi applications, but also the future of money.