Product Series Ep 4: What is Odos?
🚀 Odos Overview: A DeFi aggregator and intent solver with a proprietary optimization algorithm, integrating with DEXs, liquid staking protocols, and yield-generating protocols.
🍰 Value Propositions of Odos: Optimal Routing for favorable exchange rates, DeFi Abstraction for simplifying various actions, and Multi-Token Input for versatile trading.
🌍 Importance of Odos: Necessary for DEX aggregation in a complex crypto landscape and created by Semiotic Labs, experts in AI, cryptography, and blockchain.
🤝 Sugarcane & Odos Partnership: Enhances trading strategies with multi-token input feature, ensures cost-effective trades, and combines innovation in blockchain technology.
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Disclaimer: 🚨 The information provided across all of Sugarcane's communication channels is for informational and entertainment purposes only. It should not be construed as financial or investment advice. Consult with a financial professional before making any investment decisions.
So Sheldon today's product is. Odos, give me a little bit about that.Speaker 2:
Yeah, so Odos is really important for swapping assets from one asset to another right. So, like if you're talking about going from USDC, which is the type of token that represents a US dollar, into Ether or Ether on chain, for example, you can actually go from that USDC into Ether in the most optimal way to reduce the cost that it takes to get there and preserve that as much value as possible.Speaker 1:
Nice and how is that different than what kind of currently exists? Like, can you swap pancakes? Yeah, all those other ones.Speaker 2:
Yeah, so like, the concept of like using a DEX or a decentralized exchange is a pretty like common thing. Like it's been around since like 2019 or so. So like using DEXes has been a thing for a while, right, but, like, the problem with DEXes are that, like, when you go from one asset to another, it really depends on what's called liquidity, based on how much money is in that actual decentralized exchange and not even just how much money is in exchange overall, it's just how much money is between those two pairs, right, so like. So Ether to USDC is a pretty popular like pool or pair, and so there's a lot of people who want to put money there to basically have that be done. Right, and for that reason, the price generally tracks. Like, for example, centralized exchange is pretty closely Like, there's a lot of people who want to like arbitrage it and get it back to like the price that you would find on another marketplace. But for less common pairs of tokens, that's where you tend to get what's called slippage, where, because there's not much liquidity between those two tokens, then the actual price that you're quoted will be worse. So like, you actually lose value just based on the mechanics of a decentralized exchange. Again, this is probably like more technical details, but like the benefit for Otos is that like they aggregate a bunch of different dexes together, like bunch of different pools together, to like actual products together, so that it finds the best route to get you to from one token to another token, and sometimes it may take a third token to get to that end token, but they find the best route to get to that. So it's really just about like how you can minimize the actual time I don't know how to say time just minimize the cost that it would take to get from token A to token B and maybe there's a token C in the middle.Speaker 1:
And how do we implement them Exactly? So when a user does a, they want to stake on SureKin, what would happen with the Orosvenius?Speaker 2:
Yeah. So, like in the concept of going from, let's say you wanna stake your ether and let's say the product that you're staking with is Rocket Pool, which is a pretty popular staking product, the asset or the token that basically allows you to get exposure to the yields from staking is a token called R-Eath. So again, it's very similar to any other token on a blockchain, but it just represents the staking return, the returns you get from staking. So, from our perspective at SureKin, what we do is like let's say you have US dollars, like USDC, on let's say, polygon, right, and you want to get R-Eath, which is another type, which is again that staking token. We basically use Oros. We ask them, say, hey, here's USCC and we wanna end with R-Eath. What is the best path to get from this token to this token? And they basically quote the price that it would take to go from again the USCC to R-Eath and it finds the best route. Maybe that may be using like three different other decentralized exchanges, but they basically minimize the slippage and minimize the actual cost that the user incurs from doing that swap.Speaker 1:
And if the user has multiple assets in their SureKin wallet. So if it's not just USDC, maybe it's like half USDC and half ETH this would still be possible.Speaker 2:
Yeah, yeah. So that's even where it gets my layer about complexity right. It's really easy. If you wanna go from like let's say in your SureKin account you have Ether and let's say you have USDC, and let's say you have some of this R-Eath right and you want to go into fully R-Eath right, we actually can tell the Otos contracts that like, hey, we have USDC and we have Ether in this address. Find me the best route to get me a certain amount of R-Eath on the outside, on the output, so it's able to basically take these two different tokens and end with the third token and again route through multiple different decentralized exchanges to get the best route there. So it's a very complex, very, very, very, very important piece of infrastructure.Speaker 1:
With that complexity, was it simple enough to build on?Speaker 2:
I love this question because it's always sort of right, so the docs are also pretty good. When it comes to building on Otos, it's pretty interesting because you basically ask an off-chain service, so you ask an API endpoint. Hey, I have this token, I have this token and I want to get to this end result and find me the best path. And so you talk to this API endpoint and the API endpoint returns to you here's a transaction that you should execute and in that transaction, it does the routing for you, and so, from our context, it really takes care of the process of finding the route, packaging and creating the transaction, and then we actually we at Shuriken cover the gas to get that transaction on-chain for the end consumer and do a bridging if there's necessary for bridging.Speaker 1:
It sounds like a way that's super sweet to have people to just get that done immediately and kind of just have them handle all the laborious logistics of what you should do where and when.Speaker 2:
Yeah, I mean because we actually built out funny enough, we built out some pretty complex infrastructure to do, swapping ourselves. But then again, with the context of finding a provider who can do that piece of the pie, piece of the puzzle, the best Odo's kind of fit into that and it made sense for us to just leverage what they built out, and the fact that they're focusing just on that allows us to again focus on the user experience where we kind of do our best job and then let the people in the middle focus on that particular part that they're good at.Speaker 1:
That's a good match. I like that. And if anyone else is building on Odo's, definitely let us know, because we're interested too, and what's? Going on out there and if you need help, of course, reach out to the Odo's team or us. It's all a big, beautiful community that's working together.Speaker 2:
For sure.Speaker 1:
Alright, we'll see you on the next product.