Hi everyone, Kaiba from Atrix here with a proposal for the Atrix protocol to merge with the Serum DAO, along with the announcement of Atrix developing Atrix v2!
Atrix is a fully Serum-based AMM that offers permissionless pool and farm creation as infrastructure for token liquidity. Atrix has been an important protocol for the Serum ecosystem since its launch, driving a large portion of Serum volume and enabling ecosystem wide liquidity for 100+ projects.
Building Atrix in the Solana community has been an amazing experience and has allowed our team to connect with some of the top developers and organizations in the industry, opening up many interesting opportunities to build other new and exciting things in the space. Considering that, we think merging Atrix with the Serum DAO will be perfect for future growth of both protocols, while also maximizing decentralization for all of DeFi.
Merger Proposal and Atrix v2
We’re excited to present this merger proposal! We think embracing the most decentralized future and merging the Atrix protocol with the Serum DAO will be best for the entire ecosystem. The Serum DAO will then decide all future governance decisions regarding the Atrix protocol. Currently, Atrix does not have a token and has not raised any capital. Atrix accumulated Serum DEX GUI referral fees, a small cut of LP fees early on, and pool/farm creation fees, which are now all disabled, to help pay team costs including marketing, cranking, hosting, etc. operational costs. Atrix v2, mentioned later on, will allow for new, flexible forms of fee collection built into the protocol for the Serum DAO. The merger will diversify the Serum DAO’s protocol surface area by owning the underlying CLOB layer, and the user-facing AMM layer.
Atrix has previously received SRM grants from the Serum DAO to incentivize liquidity on the Serum orderbook. All of the remaining SRM from these grants will be returned to the Serum DAO, and the Serum DAO will make all future SRM incentive allocation decisions for the Atrix protocol. The remaining grant amount returned to the Serum DAO (if all current emissions were to stop immediately) would be ~3.70M SRM.
As we’ve recently mentioned to teams wanting to integrate with the Atrix protocol, we’re working on Atrix v2. Atrix v2 will be fully open source to benefit the entire ecosystem of developers and make DeFi more trustless. We are aiming for the first iteration of Atrix v2 to be open source within the next 2 months.
The following are a few of the improvements and additions Atrix v2 will feature. We are open to implementing any other features the Serum DAO may find valuable!
- Integration with Serum DEX v4, to increase its adoption across the ecosystem.
- An open source, easy to use SDK for client integrations.
- An open source, data rich API with detailed TVL, volume, fee, etc. metrics for every pool and farm.
- An open source frontend for user interaction with the protocol.
- Incentivized cranking for a smooth ecosystem-wide liquidity experience.
- A new farming system which will allow for the rotation of reward tokens to enable exciting features for protocols such as distributing many option tokens with different strike prices.
- Permissionless stableswap pool creation.
- Flexibility to support market making with new AMM formulas or techniques.
- Recording the volume and fees accumulated per pool within the pool account itself, similar to DEX v4.
- A single instruction to easily add or remove liquidity and create pools, unlike v1 which requires multiple instructions.
- Optimized compute and account usage, utilizing recent Solana improvements, to enable a greater degree of on-chain composability.
We propose the following as the plan for the merger:
- Current Atrix SRM incentives with partner protocols (such as Solend) will be put on a 4 week grace period following the merger so partners can make proposals to the Serum DAO to allocate Atrix SRM incentives in a decentralized manner.
- Current Atrix SRM incentives for major token pools will be put on a 3 week grace period following the merger for the Serum DAO to make decisions regarding incentive allocations.
- Two options to manage Atrix v1:
- The admin authority of Atrix v1 will be transferred to the Serum DAO, noting that Atrix v1 is not yet formally audited.
- To reduce operational overhead for the Serum DAO, the Atrix team will continue operating Atrix v1 on the Serum DAO’s behalf.
- Atrix v2 will be deployed and administered entirely by the Serum DAO’s on-chain governance. Users will be encouraged to migrate liquidity from Atrix v1 to Atrix v2.
In conclusion, this proposal outlines a request for the Serum DAO to consider a merger of the Atrix protocol and the Serum DAO.