Today we are introducing GlueX Protocol, the universal solve compute framework for decentralized finance (DeFi) that enables powerful execution capabilities tailored for blockchains, intents, originators, and liquidity providers.
GlueX Protocol provides the highest performance environment for solving algorithms, easy connectivity to solve compute for innovative intent originators, and the largest exposure to non-toxic order flow for liquidity providers.
The Current State of DeFi
Over the last two years, DeFi has evolved significantly, with one notable change being the widespread adoption of intents to improve user experience and address maximum extractable value (MEV), the unintended leakage of users' value to third parties.
Intent-based architectures allow decentralized applicatitons (dApps) to manage transaction execution, shifting responsibilities from users to professional entities and creating opportunities for execution service providers. On intent-based dApps, users commit to inputs and outputs without knowing in advance how the output will be achieved. Once an intent is created, the dApp relies on its solve compute capabilities to determine the best execution method.
Currently, high-performance solve computing resources are scarce and only accessible to a few well-funded dApps. These dApps have historically spent large amounts of capital to outsource their computing needs to specialized engineers, creating a barrier to entry for intent-based dApps that lack resources. For intent-based DeFi to thrive, a universally accessible high-performance solve compute capability is essential.
Without such a universal capability, new dApps struggle to compete, as they cannot attract top-tier solve computing providers. This creates an uneven playing field, where only the best-funded dApps can offer optimal user experiences.
Solve Compute Capabilities
Building highly-performant systems for solve compute is hard for several reasons. In a nutshell the quality of solve compute can be expressed as a function of optimization capabilities and the quality of information made available to said optimization capabilities.
To illustrate, we can take an analogy to Google Maps. Imagine a navigation intent whose solving requirement is to generate a route from location A to location B. This technology has two primary tasks: quickly identifying a route to ensure user satisfaction and finding the best possible route considering time and potential stops. If the optimizer lacks information about location B, no route can be found, regardless of its strength. Conversely, if sufficient information about both A and B is available but the optimization capabilities are weak, a satisfactory solution may not be found promptly, degrading user experience.
Developing highly-performant solve compute capabilities for DeFi is particularly challenging. Essential information is scattered across various protocols, each with different terminology for the same concepts. Additionally, identifying the optimal solution requires complex optimization capabilities. To address this, a framework is needed that enables efficient information ingestion and provides access to an increasingly diverse and powerful set of optimizers.
GlueX Protocol
GlueX Protocol is a modular framework designed to uniformly represent blockchains, intents, originators, and liquidity providers for deploying high-performance, universal solve computing capabilities.
These capabilities can be accessed by any blockchain, originator or liquidity provider configured as a GlueX module and made available to the protocol’s competitive Optimizer Network. This ensures seamless integration and efficient operation across DeFi, providing a standardized and scalable solution for all participants in the intent-solver supply chain.
GlueX Optimize SDK
The GlueX Optimize SDK is an open-access repository written in Python, encompassing all configured GlueX modules, including blockchains, intents, and liquidity providers. It is designed to empower a network of algorithms providing optimization capabilities (”Optimizers”) to find solutions on behalf of GlueX Protocol.
Each GlueX module comprises a set of submodules. Contributors to the GlueX Optimize SDK, known as “Gluers”, are compensated for successfully integrating new modules into the protocol, thereby increasing the amount of information available to GlueX Optimizers. Additionally, GlueX Hooks can be attached to each module to enable capabilities for liquidity providers that would otherwise be impossible outside of the GlueX protocol.
What’s next?
In the coming weeks, GlueX's universal solve compute capability will be rolled out to an initial set of EVM-based blockchains and originators. The first version of the GlueX Optimize SDK is set for release by September 2024. At that time, we look forward to welcoming the first Gluers and Optimizers who will contribute towards enhancing GlueX Protocol’s capabilities.
We welcome individuals or teams aligned with our vision to create a universally accessible solve compute capability for DeFi. Soon, we will provide more details on how to operate as an Optimizer or contribute as a Gluer, integrating intent originators and liquidity providers.
Please reach out and join our community to stay up to date and be amongst the first to access these new opportunities.