Shell Protocol

In the wake of several high profile collapses among centralized players in the crypto world, DeFi is naturally receiving renewed attention as an alternative to centralized finance platforms. At BlueYard, we’re long-term believers in the potential of DeFi to deliver a superior coordination mechanism for the world’s financial activities. Despite such promises, DeFi remains plagued with issues around UX, fragmented liquidity, high fees, and security. Shell improves on this in a number of ways, most critically by simplifying and unifying accounting logic across DeFi protocols so that new primitives can be composed with ease. An AMM (automated market maker), for example, has to build custom smart contracts for its business logic (to determine the price of assets) and its accounting logic (to track balances and transfer tokens). By abstracting away the complexity of building the latter, Shell allows for gas savings, improved efficiency, and lower barriers to entry for developers.

Shell Protocol’s composable layer for DeFi activity can significantly improve developer UX, reduce gas fees, increase security, and simplify smart contract logic that underpins current DeFi ecosystems. It empowers developers to build novel DeFi protocols that are faster, more secure, and more usable than existing solutions. You can check out Shell Protocol here.

Our Thesis

If DeFi is to achieve its end goal of being a secure, permissionless, always-on system, it will need to be simpler to build, cheaper, faster, and more secure than its current state. With its focus on simplifying DeFi smart contract development, making transactions less cumbersome, and improving overall UX, Shell Protocol could be an important step towards this future. If Shell becomes as foundational to DeFi as we expect it to be, it could be one of the most valuable protocols in the ecosystem, underpinning the next generation of AMMs, borrowing/lending protocols, and other products that make DeFi the default for conducting business.