Shadow Exchange is a concentrated liquidity layer and exchange built on the Sonic network, powered by x(3,3)—an evolved version of the metaDEX model that solves the DEX trilemma by aligning traders, liquidity providers, and token holders without requiring lengthy lock-ups.
Built for Sonic's sub-second block times and instant finality, Shadow delivers an ultra-responsive trading experience with near-zero slippage. The platform leverages Sonic's FeeM system, which returns 90% of gas spent to improve user experience through dynamic fees and MEV protection.
At the core of Shadow's innovation is the x(3,3) model, which evolved from Andre Cronje's ve(3,3) by removing the friction of forced lock-ups while maintaining strong incentives. Users can exit xSHADOW positions anytime with flexible penalties, and 100% of exit penalties are streamed to active stakers through a unique Player vs. Player (PvP) rebase system.
Shadow's concentrated liquidity technology enables order book-style AMM functionality, allowing liquidity providers to focus capital in custom price ranges for 80-100x better price execution compared to traditional AMMs. The competitive farming system rewards the most productive liquidity with higher returns, encouraging optimal range selection and active management.
To further reduce friction, Shadow's liquid staking solution automates voting and reward claims while maintaining full liquidity, eliminating the need for traditional lock-ups while providing full access to governance and rewards.
This innovative approach has propelled Shadow to become the leading DEX on Sonic, with over $10 billion in trading volume and $28 million in fees generated to date, as well as 500,000+ active monthly addresses.
Shadow also operates cctp.to, a fee-free CCTP v2 frontend built as a public good, enabling seamless cross-chain USDC transfers with no added bridge fees. This infrastructure supports the broader DeFi ecosystem while maintaining Shadow's commitment to accessibility and user experience.
Shadow's order book-style AMM allows traders to access deep liquidity with minimal slippage through concentrated liquidity positions. Users can trade with confidence knowing they're getting the best price execution available on the network.
The $x33 liquid staking token automates voting and reward claims while maintaining full liquidity, eliminating the friction of traditional lock-up models.
Shadow operates cctp.to, a fee-free CCTP v2 frontend that enables seamless cross-chain USDC transfers as a public good for the broader DeFi ecosystem.
Sonic's FeeM integration provides MEV protection through arbitrage bots that capture price discrepancies before external MEV bots with captured value returned to the ecosystem.
Shadow's algorithm automatically adjusts fees based on market conditions and trading volume, optimizing for both user experience and protocol sustainability.
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