Haiko is a decentralized exchange (DEX) built on the Starknet network, utilizing a variety of automated market maker (AMM) models to optimize returns and minimize costs for liquidity providers (LPs) while reducing trading fees. Despite launching in early 2024, Haiko has quickly risen to become a top 5 DEX on Starknet according to DefiLlama, showcasing its rapid growth and adoption within the ecosystem.
Table Content:
- Haiko’s Product Suite: AMM, Strategies, and Solver
- AMM: Concentrated Liquidity and Hooks
- Strategies: Automated Liquidity Positioning
- Solver: Enhanced Automated Strategies
- Team, Investors, and Partners: A Look Behind the Curtain
- Exploring Similar Projects in the DeFi Landscape
- Conclusion: Haiko’s Potential in the Starknet Ecosystem
The Haiko user interface.
Haiko’s Product Suite: AMM, Strategies, and Solver
Haiko offers three core products designed to empower liquidity providers: AMM, Strategies, and Solver. Let’s explore each in detail:
AMM: Concentrated Liquidity and Hooks
Haiko’s foundational product is its AMM, employing a concentrated liquidity model (CLMM) in conjunction with Hooks. This allows users to provide liquidity within a specific price range, as opposed to the traditional 0 to infinity range.
For instance, in a STRK/USDC pool, a user might choose to provide liquidity between 0.4 and 1 USDC/STRK. This concentration maximizes trading fee earnings if the STRK price stays within the designated range. However, if the price moves outside this range, the LP will not generate returns.
While CLMM optimizes returns and fees, it also exposes LPs to impermanent loss if the asset price experiences significant volatility.
*Hooks, introduced in Uniswap V4, enable customization of swap mechanics, pool fees, and LP interactions.
Haiko’s AMM interface.
Strategies: Automated Liquidity Positioning
Strategies automatically adjust user liquidity positions to mitigate the risk of token prices exceeding the provided liquidity range. This auto-rebalancing mechanism leverages bid and ask data from centralized exchanges (CEXs). The system calculates and shifts liquidity to optimal positions, incurring a transaction fee for each adjustment.
While Strategies aim to maintain active liquidity and stable returns, performance depends on the accuracy and latency of the oracle providing CEX data. Furthermore, positioning relies on the team’s chosen strategy, meaning impermanent loss is still possible.
The Strategies interface on Haiko.
Solver: Enhanced Automated Strategies
Solver builds upon Strategies, offering key improvements: zero transaction fees for liquidity repositioning and more sophisticated tactical adjustments. There are currently two Solver types:
Replicating Solver: This Solver dynamically adjusts liquidity based on CEX bid/ask data and the user’s current profit, including trading fees and Haiko rewards. It represents a significant upgrade to the Strategies product.
Reversion Solver: Targeting high-volatility token pairs, this Solver automatically adjusts liquidity positions accordingly. While Replicating Solver focuses on established CEX-listed pairs, Reversion Solver caters to more volatile markets.
Haiko recommends utilizing Solver for its fee-free operation and enhanced impermanent loss mitigation.
The Solver interface on Haiko.
Team, Investors, and Partners: A Look Behind the Curtain
Currently, the team behind Haiko remains anonymous. Information regarding funding rounds and investors is also unavailable. However, Haiko boasts strategic partnerships with prominent Starknet ecosystem projects like Pragma, Starknet itself, and Retro Bridge. This article will be updated as more information becomes available.
Exploring Similar Projects in the DeFi Landscape
Ekubo: Another Starknet-based AMM platform utilizing the CLMM model for optimized liquidity provision.
Trader Joe: A pioneering AMM on the Avalanche network, recognized for its early adoption of the CLMM model.
Conclusion: Haiko’s Potential in the Starknet Ecosystem
Haiko’s innovative approach to liquidity provision, coupled with its rapid ascent within the Starknet ecosystem, positions it as a key player in the decentralized finance space. While information regarding the team and investors remains limited, the platform’s robust product suite and strategic partnerships suggest a promising future. As Haiko continues to develop and evolve, it will be crucial to monitor its progress and assess its long-term impact on the DeFi landscape.
