Urani

Urani Swap is Solana's permissionless intent-based and oracle-assisted swap protocol and aggregator (also known as a meta-DEX aggregator).

Based on state-of-the-art MEV and price-discovery research, users can access the best asset prices while protecting them from toxic bots.

The Urani Protocol:

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  leverages batch auctions,

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  deploys third-party agent operators,

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  makes use of a market data feed as its price-finding mechanism...

  Terminology

    Arbitrage

  The purchase and sale of the same asset in different markets to profit from differences in the asset's price. Arbitrage can incentivize a healthy pricing environment if it does not increase toxic order flow.

    Automated Market Maker (AMM)

  A decentralized exchange that maintains a pool of capital (a liquidity pool) with at least two assets, and a smart contract governs the rules by which traders can purchase and sell assets from the liquidity pool. For context, Uniswap v1 introduced a class of AMM called a Constant Product Market Maker (CPMM), Uniswap v2 introduced the auto-route splitting trades across, while Uniswap v3 introduced a new feature called concentrated liquidity.

    Backrunning

  When a transaction sender wishes to have their transaction ordered immediately after an unconfirmed target transaction.

    Dollar Cost Averaging (DCA)

  A strategy to help against market volatility where the user agrees on set recurring swaps on a time interval.

    Frontrunning

  The process by which an adversary observes transactions on the network layer and then acts upon this information by issuing a competing transaction.

    Intent

  A user's desire to swap an amount of a sell token for a buy token. Intents can be used interchangeably with orders.

    Limit Orders

  Buy or sell orders that are automatically placed once an asset hits a certain price.

    Liquidity Pool

  A set of funds created by grouping two tokens that form a "pair" and leaving an amount of them in exchange. This setup allows users to buy and sell the tokens that comprise that set of funds.

    Market Orders

  Buy or sell orders that are submitted as soon as possible at the current market rate.

    Nakamoto Coefficient

  Measures the minimum percentage of nodes an attacker would need to control to compromise the network's security. A higher Nakamoto coefficient indicates a more decentralized network, so an attack would require a larger portion of the nodes to be compromised.

    Oracle Extractable Value (OEV)

  A subset of MEV, when applications rely on an oracle's update for arbitrageurs or liquidators to capitalize on this state inconsistency.

    Priority Fees

  An additional fee on each transaction that prioritizes the execution over transactions with lower costs. During network congestion, priority fees can boost a transaction.

    Proof of History (PoH)

  Solana’s Proof of History mechanism provides a way to establish a trustless and verifiable order of events (transactions) on the network. This makes it more challenging to insert, reorder, or delay transactions in a way that would be advantageous for extracting MEV.

    Quote Deviation

  The difference between the quote the user received and the price at which their order was settled.

    Sandwich Attack

  On automated market makers, an adversary can create two transactions and insert before and after a victim transaction to profit from it (for instance, from slippage).

    Slippage

  The price variation from the moment a user initiates a trade to its execution. For example, higher slippage should be expected during token launches due to rapid price changes.

    Surplus

  The price improvement on a user's limit price.

    Snipers

  Due to Solana's low fees, sniper bots are designed to increase the chance of landing a transaction during chain congestion.