Shell Protocol Basics
Shell in a nutShell
These docs refer to Shell v3.
What is Shell Protocol?
Shell Protocol is the first DeFi super dapp. Access as many DeFi protocols as you want, without connecting to a hundred different dapps. Instead, use just one dapp for every protocol (like Beefy, Aave, Uniswap, Curve, Balancer, and Pendle). Wrong chain? Zap into any protocol from other chains in one click. Best of all, Shell is open source and permissionless—any developer can connect their protocol or build their dapp on the platform.
Shell is for developers
Shell allows you to compose a variety of DeFi protocols in one atomic transaction, cross chain.
It consists of a set of EVM-based smart contracts that form a base layer for things like building omni dapps or executing intents.
Shell contracts have been production-tested and rigorously audited.
Why build with Shell?
Using Shell's pre-built DeFi components can reduce development time, saving big on costs.
How? Shell reduces code complexity and streamlines DeFi composability. At its heart this is due to an intent-centric architecture, which is critical for the future of UX. Future-proof your DeFi project with Shell, where everything can natively plug into an intents framework.
Builders can:
compose together any set of DeFi components on Shell (think omni dapps)
connect a DeFi protocol to Shell by building an adapter, and get instant composability with all major DeFi protocols
create new Shell primitives, aka any new DeFi protocol with custom logic
How does Shell compare to existing DEXs and aggregators?
Shell is not a DEX or an aggregator. Rather, it is a framework for composing any DeFi protocol in one atomic transaction.
While a DEX simply allows users to swap tokens using its own pools, Shell allows users to swap tokens through multiple pools on multiple DEXs.
While an aggregator specializes in optimizing trade routes across multiple pools, Shell's purpose is to standardize integrations between those pools, making it easier to build aggregators.
Unlike DEXs and aggregators, Shell is not limited to just swaps. Instead, Shell is useful for composing any type of action within DeFi: providing and withdrawing liquidity, lending and borrowing, buying and selling NFTs, and so on.
What's the innovation?
Shell's intent-centric smart contracts completely separate accounting (the Ocean) and business logic (Ocean Primitives) in an open framework for all DeFi. This is the critical innovation that standardizes integrations for everyone.
Shell is fully composable and can be extended with any kind of logic or component that interacts with fungible or non-fungible tokens. In certain scenarios, it proves to be up to 4 times more gas-efficient than its competitors.
This unique architecture enables powerful omni dapps.
What is an omni dapp?
The simplest and slightly geeky explanation would be "one dapp to rule them all".
An omni dapp is any dapp that can handle and combine multiple interactions with many different protocols without leaving the dapp's interface, or calling external smart contracts directly. Everything is handled within that one app. For example: Bob wants to sell his NFT for a certain amount of USDT...
In a mono dapp world, Bob has to:
List his NFT for a price in ETH on OpenSea
Once the NFT is sold, he exchanges that ETH for USDC on Uniswap
After Bob gets USDC, he exchanges that USDC for USDT on Curve
Bob had to make three steps and go to three different dapps in order to get to the desired outcome. That's a lot of unnecessary time, work, and transactions!
In an omni dapp world, Bob has to:
List his NFT for a price in USDT on an omni dapp
And that's all. One transaction. Everything else mentioned above is handled for him by that one app. In other words, the omni dapp will call all three protocols (OpenSea, Uniswap, and Curve) in order for Bob to ultimately receive his USDT.
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