Protocol tl; dr

The Urani Protocol is a novel orderbook aimed to provide toxic-MEV minimization from swap trades through:

• A competitive marketplace for liquidity routing facilitated by MEV agents, creating what we refer to as a multidimensional price free market.

• A novel peer-to-peer (P2P) and ring-matching price-finding algorithm.

A bird's-eye view of how the Urani Protocol connects to the other parts of the stack.

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Solving the Price-finding Routing Problem

One of the most exciting features of the Urani protocol is its implementation of P2P matches for orders with the same assets and compatible quantities. These matches enable trades to achieve the best quotes possible without intrinsic swap fees or slippage.

High-level lifecycle of an order intent in the Urani Protocol.

As you can imagine, this feature allows for secure exchanges between individual swappers. The Urani protocol verifies counterparties' opportunities before exploring alternative liquidity sources.

The price-finding routing problem can be modeled as a multidimensional network comprising P2P or ring matches, AMMs, DEXs, LPs, or liquidity sources, where the utility function (Ω) of the net trade is maximized.

In a vanilla setup, this could initially be represented as an undirected graph where the nodes correspond to tokens, and the edges represent the exchange rates between them. However, this representation is unrealistic due to reality's complexity (for instance, three-pools or multiple CFMMs could not be incorporated).

A more intuitive representation of a DeFi network is a hypergraph, where edges can connect multiple vertices. Interestingly, routing (arbitrage, swaps, etc.) over a hypergraph can become a convex optimization problem, so it could be efficiently solved to achieve global optimality.

Although P2P matches will be available for the initial v1 (alpha) launch, more advanced ring (DAG) matches will begin to be implemented in future versions of the protocol.