Welcome to Mondrian Swap

Introduction

What is Mondrian Swap?

Mondrian Swap is the first community-driven Decentralized Exchange (DEX) on the Abstract Blockchain, leveraging the Balancer V2 framework and featuring a custom vote escrow governance model designed to create a self-sustaining liquidity ecosystem. Unlike traditional DEXes that rely on unsustainable emissions and mercenary capital, Mondrian Swap leverages veNFT-powered gauge voting to ensure that incentives flow toward long-term liquidity providers and projects that contribute real value to the ecosystem.

Our mission is clear—to become the one-stop-shop for DeFi on Abstract, serving as the backbone of a robust and evolving ecosystem. Mondrian Swap is designed to be the core of the new and improved DeFi landscape, offering users access to a variety of financial instruments and opportunities.

Mondrian Swap Vision

Mondrian Swap isn’t just another DEX—it’s a liquidity engine for the Abstract Chain ecosystem. Our goal is to:

1. Create the deepest liquidity pools on Abstract, using the proven Balancer V2 weighted AMM model.

2. Introduce veNFT-based governance, allowing users to lock LP tokens and vote on emissions in a sustainable way.

3. Incentivize real participation through gauge voting, bribes, and fee-sharing models that benefit both liquidity providers and the Abstract ecosystem.

4. Launch a sustainable incentive program that helps new projects establish liquidity without relying on inflationary emissions.

By aligning long-term incentives with ecosystem growth, Mondrian Swap aims to be the cornerstone of liquidity on Abstract Chain, ensuring that projects launching here have a reliable, deep, and sustainable market for their tokens.

Why Mondrian Swap?

• Cutting-Edge AMM Technology Built on the Balancer V2 framework, Mondrian Swap offers dynamic liquidity pools and customizable AMMs that cater to diverse trading strategies and asset management needs.

• User-Centric Features Our intuitive interface and advanced functionalities are tailored to enhance user experience, making DeFi accessible to everyone—from beginners to seasoned traders.

• Ecosystem Integration Designed to integrate seamlessly with other DeFi protocols on Abstract, Mondrian Swap aims to foster a collaborative and expansive financial ecosystem.

• Security and Transparency With audited smart contracts and transparent operations, Mondrian Swap prioritizes user trust and security, ensuring a safe environment for all transactions.

What is Balancer?

Balancer is an automated portfolio manager, liquidity provider, and price sensor that redefines how liquidity pools function in DeFi. Unlike traditional index funds that require fees for portfolio management, Balancer allows users to earn fees from traders who rebalance the portfolio by capitalizing on arbitrage opportunities.

Key Features of Balancer:

• Automated Portfolio Management: Create customizable liquidity pools with multiple assets and weightings, reducing manual management.

• Capital Efficiency: Balancer V2 introduces innovations that minimize gas costs and maximize capital efficiency, making trading more cost-effective.

• Flexible Liquidity Pools: Supports custom AMMs, enabling diverse trading strategies and optimizing liquidity use.

• N-Dimensional Invariant Surface: Extends the constant product formula from Uniswap, allowing for complex pool structures and improved price discovery.

The core contracts that make up the Balancer V2 Protocol, such as the Vault and Pools (Weighted, Stable, LBP, Managed, Linear, etc), are immutable by design. Any pool updates are made by deploying brand new factories/pools and require users to electively migrate.

Explore More

To learn more about the underlying technology that powers Mondrian Swap, explore the following resources:

• Balancer V2 Documentation
• Balancer V2 Audits

How Mondrian Differs from Balancer

Liquidity Pool Maintenance

Design of protocol “Base”/ ”Core” pools: Mondrian, like Beets, but unlike Balancer, is the owner of all pools on the DEX. This allows the following functionality:

Where the pool owner = Mondrian multisig, change pool mechanics in response to market conditions and otherwise for the benefit of the protocol

Change the Swap fee*

Change the Amplification factor

*Swap fees can be changed in order to improve utilization rates and/ or revenue generated by a liquidity pool. The amplification factor can only be changed to prevent loss of user funds.

How do I change the swap fee % for the pool I composed?

It is generally better to create a new pool than change the swap fee. Please reach out to the team if you need more information.

Why we made this change

To ensure that we don't wind up with "dead" liquidity pools. For how the amplication factor affects Stable poos (and only Stable pools), we refer to Beets' documentation.