Kriptoks

Decentralized exchanges (DEXs) have been gaining popularity in the cryptocurrency ecosystem as a more secure and trustless alternative to centralized exchanges. However, liquidity dispersion remains a major issue in many DEXs, resulting in high price impact and slippage. RadioShack aims to solve this problem with its unique Starfish Topology, offering three competitive advantages.

RadioShack's Starfish Topology uses a hub-and-spokes structure, linking tokens with the RADIO token as the central, large-degree node. This results in structured and rational liquidity pools, unlike the chaotic and disperse liquidity structure found in many other swaps.

The graph below shows the typical liquidity dispersion model currently used in the industry:

(Image description: The graph shows solid lines representing deep liquidity pools, thinner lines representing medium-sized liquidity pools, and dotted lines showing very shallow liquidity pools.)

As liquidity pairs are often added without much planning, the graph's connectivity is low, and most paths involve thinly spread liquidity pairs. The average distance of the graph (adjusted for depth of liquidity) is high, and the diameter of the graph is large. For example, to swap from USDT to DAI, two possible paths are available: Route #1 - Direct from USDT to DAI with low liquidity, resulting in high price impact and slippage, and Route #2 - USDT > USDC > WETH > DAI with 3 hops of varying degrees of liquidity, still not ideal.

The Starfish Topology aims to significantly reduce the diameter of the graph and increase its liquidity-adjusted connectivity, resulting in efficient swaps through structured and rational liquidity pools.

The Starfish Topology also offers massively improved total value locked (TVL) utilization. By concentrating liquidity and creating deeper pools per $1 of TVL, price impact and slippage are improved. The topology attempts to balance the depth of liquidity among its 'limbs' by moving liquidity incentives to the thinner but high traffic limbs.

Adding a new partner token or any token to the RadioShack swap ecosystem is simple with the Starfish Topology. The RADIO token is deeply paired with majors such as USDC, ETH, DAI, and USDT. Providing deep liquidity to a new token is as simple as pairing the new token with RADIO, without having to spend any money on collateral such as USDC.

New protocols are often rich in their own token but poor in majors such as USDC, making it a pain point for almost all protocols to lock up their new token with a huge amount of scarce collateral to create a deep liquidity pool. With the Starfish Topology, adding new tokens requires no further collateral other than RADIOs. This is a significant win-win scenario that solves a major real-world problem for the fast-growing crypto ecosystem.

In summary, RadioShack's Starfish Topology offers efficient swaps through structured and rational liquidity pools, massively improved TVL utilization, and instant and deep liquidity service to new, promising protocols. By using the RADIO token as the central, large-degree node, the Starfish Topology solves the liquidity dispersion problem in DEXs, resulting in a more seamless and effective crypto ecosystem.