Protocol Integration
Tycho Protocol SDK is a library to help you integrate liquidity layer protocols (DEXs, Staking, Lending, etc.) into Tycho.
Integration Process
To integrate with Tycho, you need three components:
Indexing: You must provide the protocol state/data needed for simulation and execution.
Simulation: You have to implement the protocol's logic for simulations.
Execution: You have to define how to encode and execute swaps against your protocol.
We provide a comprehensive testing suite to ensure you can integrate indexing, simulation, and execution correctly. A passing test suite is essential for an integration to be considered complete.
Indexing
You will need a substreams package that emits a specified set of messages. If your protocol already has a substreams package, you can adjust it to emit the required messages.
It's important to note that simulation happens entirely off-chain. This means everything you need during simulation must be explicitly indexed.
Simulation
Tycho offers two integration modes:
VM Integration: You need to implement an adapter interface in a language that compiles to VM bytecode. This SDK provides a Solidity interface (read more here). Simulations run in an empty VM loaded only with the indexed contracts, storage and token balances.
Native Rust Integration: You need to implement a Rust trait that defines the protocol logic. You must index values used in this logic as state attributes.
Execution
To enable swap execution, implement:
SwapEncoder: This is a Rust struct that formats input/output tokens, pool addresses, and other parameters correctly for the
Executorcontract.Executor: This is a Solidity contract that handles the execution of swaps over your protocol's liquidity pools.
Integration Criteria
Tycho supports many protocol designs. However, certain architectures present indexing challenges.
Before you integrate, consider these unsupported designs:
Protocols where any operation that Tycho should support requires off-chain data, such as signed prices.
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