Shell Protocol Explained- The Future of DeFi Liquidity and Yield!

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Welcome to "Shell Protocol Explained: The Future of DeFi Liquidity and Yield!" In this video, we dive deep into the groundbreaking Shell Protocol, a set of EVM-based smart contracts on Arbitrum One, which is changing the face of the DeFi landscape. We'll explore how Shell Protocol provides a revolutionary framework for an internet monetary system, using stablecoins as its building blocks, and offers an optimized liquidity pool for stablecoin trades.

Transcript

00:00what's up guys welcome back to the channel in today's video we are doing a review of

00:07shell protocol so this is uh effectively a decentralized exchange on the arbitram network

00:14shell protocol is uh in fact also a assembly of uh evm based smart contracts so that's an ethereum

00:24virtual machine situated on arbitram one the network and unlike other d5 protocols which

00:31actually depend on large single purpose smart contracts shell does serve as a hub for a modular

00:41ecosystem of services and its architecture simplifies the bundling of smart contracts

00:48or the development of new ones and also allows users to batch a different number of services

00:54into single transactions so it's also renowned for streamlining d5 both for users and for developers

01:02and it's a public asset that will be overseen by the decentralized autonomous organization so before

01:09i get into what shells are and all of that good stuff make sure you subscribe to the channel give

01:16us a like and also turn on your post notifications so you can be alerted anytime we have new content

01:23and also don't forget to check out the links in the description especially to some of my favorite

01:29decentralized exchanges these include gmx gtrade or gains network also mux protocol you can also use

01:39a sin futures or apex protocol i believe as we enter this new bull cycle it's uh important for you guys

01:47to be using trusted platforms that are non-custodial where you don't have to worry about somebody

01:52controlling your private keys so also make sure you go to our main site centralized.news for the best

02:00cryptocurrency exchange reviews our d5 platforms if you want to learn about nft marketplaces

02:06and a whole lot more trading investing all of that good stuff then check out our main site so let's

02:13dive into what shells are actually so if we look at stable coins that are placed in pools these are

02:22typically provided by liquidity providers so to monitor these contributions the pool does issue some

02:28type of share or these so-called shells to those that are actually depositing the tokens and

02:34to extract their tokens providers will then exchange their shells and these shells encapsulate the

02:42pool's underlying assets similar to how you shell sort of a shell houses a particular organism like a snail

02:50or a turtle so shells offer three main advantages of a non-active stable coins including just liquidity

02:59and also spreading of risk and yield and they essentially symbolize tokenized liquidity pools

03:06by possessing liquidity that is used for swaps stable coins in the pool can also be directed

03:13or directly transformed into shells and vice versa making them intrinsically very liquid assets so they

03:22also provide more than an efficient liquidity source to represent diversified asset portfolios which some

03:30might see as a sort of a vehicle for reducing risk uh on their holdings uh as compared to just holding a

03:39simple a single stable coin for example so in addition to that the liquidity pool can also generate passive income

03:46uh for shareholders by providing liquidity to the wider market and each swap generates a fee for the pool

03:54which directly increase increases that value for the shells uh through that income generation

04:02on the assets so considering that these shells are diversified inherently liquid and yield bearing they

04:09potentially could then become uh some of the most optimal crypto asset values in terms of uh them being

04:17easier to manage in single shells uh than multiple stable coins as well so currently there's no equivalent

04:25to the most safest or most liquid sort of interest bearing asset in traditional finance such as u.s treasuries

04:33in the world of uh crypto so this is why the shell team is looking at being a little bit innovative in

04:41introducing this concept to get started on the platform you can use a web3 wallet such as metamask

04:48just connect to that and once you're connected you can proceed to swap any asset that could be eath or

04:55eath for example for usdc as you can see in this example and you can then proceed to pay any gas fees

05:01that are associated with that transaction and once you've agreed to pay the gas fee to the network

05:06you can confirm that transaction in the trade and you'll be able to see the confirmation that your

05:11trade has been approved once it's been processed as you can see in this example you can also verify

05:16the transaction on chain via a block explorer since shell protocol runs on arbitram you can check that on

05:24uh be scan okay so you'll also be used uh be able to see the transactional information on your typical

05:31dashboard so to earn shells you know you can wrap tokens or provide liquidity using that trade button

05:41and so people will be asking why would you use shells or why would you choose this so the team does

05:47stress that the protocol does enable you to automatically merge any set of transactions using

05:55uh such as a lping for example lending or borrowing or executing multi-token um nft swaps while also

06:04keeping the gas fees really low and um they do have a native uh automated uh market maker engine which

06:13allows you to create custom pools with concentrated liquidity and fungible lp tokens as well which

06:20significantly enhances the precision of the bonding curves and these well-constructed curves do capture

06:28significantly more volume than uh their competitors in shell is also a platform for streamlined

06:35modular d5 contract it's designed uh to reduce a code complexity for builders and also help with the

06:44user experience so as far as the architecture i go a little bit in depth on that in the actual review

06:52i talk about the architecture overview uh comprising of two main components that's the ocean which is a

07:00communal accounting system that simplifies the composition of d5 primitives also they have

07:07pretese which is an amm engine capable of accurately replicating any bonding curve shape while utilizing

07:17fungible lp tokens so i also do go into the history of shell as far as their version one protocol which

07:26has actually been retired now i also go into just explaining a little bit more about their value

07:31proposition and like i said their mission is to establish this uh internet monetary system using

07:39stable coins as foundational elements uh and uh its launch offers a liquidity pool tailored for optimized

07:47stable coin to stable coin exchanges feathering weights significant liquidity protections against

07:54broken pegs and also fluctuating fees and moreover it can directly provide liquidity between stable coin

08:01derivatives such as c tokens which are the primary means of interacting with the compound

08:07protocol you've seen compound do really well uh over the last few days uh it was significantly undervalued

08:15i did do a full review of compound uh which is also available on our main site and on his channel

08:21so you can see why i am bullish on compound and also on eight tokens which are minted and burn upon

08:29supplying withdrawal of assets on the ave market so this is uh what shell protocol is aiming to construct

08:36a framework for adaptable bonding curves that can actually adjust to new applications and market fluctuations

08:43so i go a bit deep into that and also into designing an optimal protocol for shells and how you know they've

08:52sort of integrated a whole bunch of defy tools and also i look at the use cases of shell protocol in depth

09:02as well as the stimulating of liquidity through these stable coins and also settlement of currency for defy

09:10protocols uh also touch on that so if you want to know more make sure you just check out the link in

09:15the description to the full review on our main site centralized.news don't forget to also check out

09:21the links in the description like i said to my books you can check out my free book if you're interested

09:26in defy and all of these uh concepts that sound sometimes a little bit intimidating a little bit complex

09:34but uh you just need to you kind of have a basic understanding of the world of defy uh and uh how

09:41that ties or is uh comparable to the traditional finance uh structures and how these new ideas are

09:50coming into play in defy and these are what these protocols are essentially trying to automate so check

09:57out my book defy-millionaire.com is the link to my free book you can download it check out um check

10:05it out and also check out our telegram and our discord server don't forget to like share and subscribe

10:11turn on the notification bell i will be seeing you guys in the next video but uh if you're also

10:16interested in just the tokenization of real world assets on the blockchain and the different use cases of

10:22distributed ledges you can also check out the links to my books tokenized trillions and blockchain

10:27applied they will give you the full load down on all of that other than that guys i will see you

10:34in the next video peace and love

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