Since its first announcement on July 20, 2021, Trident seems to be the next evolution in the world of decentralized finance (DeFi). The purpose of this new protocol is to create a set of software components facilitating the implementation of liquidity pools with various functionalities. Let’s see in detail what is behind this technology.
Trident, a new start for Sushi?
While it was delayed throughout 2021, due to internal issues, Trident is finally available on the Polygon (MATIC) sidechain. This protocol was created by some members who make up the Sushi team . Recall that Sushi is the 4th largest decentralized exchange with 3.63 billion dollars in total value locked on more than 16 blockchains.
Thus, for reasons of gas savings and to have a large population that will use this new function, the organization has decided to deploy the first version on the Polygon blockchain.
This first Trident test is just the beginning. Indeed, the protocol in its current state is no different from the simple token swap that you can already find on the DEX with the sweet name of the traditional Japanese dish.
As audits arrive, for each of Trident’s functionalities, it will evolve. The team wants to preserve user safety at the expense of shoddy work that could lead to loss of funds.
But what is Trident?
Trident can be seen as a new step in decentralized finance (DeFi). It is to automated market maker 2.0 what Olympus Dao or Tokemak are to DeFi 2.0, i.e. a pioneer. It is through a framework called IPool that the Sushi team has developed a smart contract which aims to bring together several functionalities.
Before dwelling on the latter, it is important to understand that a liquidity pool is a smart contract that cannot be modified once in place. For example, it is not possible for Uniswap to modify a smart contract on an already launched pool . Thanks to IPool, the modification of the latter can take place. This will have the effect of unlocking or not unlocking specificities.
It is known that 3 types of pools currently exist. The first which is the one used by Uniswap v3.0 and which allows users to concentrate their liquidity on a certain range or not. The second which is specific to a single protocol, Balancer.
The purpose of the latter is to have access to so-called weighted pools. The pool creator is free to define the assets (up to 8 for non-stable tokens otherwise 5) with percentages that can vary from 1 to 99%. Finally, the last groups pools of stablecoins or crypto-assets with the same value. This corresponds to what the Curve protocol offers .
The power of IPool lies in its ability to bring together these 3 types of pools through a smart contract , while being able to modify only the latter. Trident is therefore the name behind the first exploitation of this framework.
The revival of Sushi?
Indeed, if scandals have been surrounding the SushiSwap protocol for several months, the delivery of this first product seems to be reassuring. That said, nothing is won yet and we will have to be patient and be sure that Triden is functional before declaring victory for the team. This new version leads to a reduction in costs thanks to the optimization of the code and the use of the BentoNox (the toolbox of the protocol).
At the same time, Sushi is actively working on optimizing transaction routes, as DEX aggregators 1Inch and ParaSwap are already doing. Note that part of the transaction fees (carried out on any blockchain) will be allocated to holders of xSUSHI tokens, the SUSHI staking token.