AlvoSwap aims to function as a decentralized exchange (DEX) that utilizes a concentrated-liquidity automated market maker (AMM) combined with a cross-chain messaging layer, seeking to provide a unified liquidity layer across multiple blockchain networks. It intends to allow liquidity providers to deposit funds on their native chain while enabling traders to execute orders that atomically mint or burn liquidity shards on other chains.

Overview

AlvoSwap is designed to address the issue of fragmented liquidity across different blockchain networks. The platform combines a concentrated-liquidity AMM with a LayerZero-based messaging layer and zk-proof relayers. This architecture aims to allow for cross-chain swaps without the need for custodial bridges or wrapped tokens. The protocol seeks to unify liquidity across networks like Ethereum, BNB Chain, Solana, and Bitcoin, with the goal of improving capital efficiency and user experience in decentralized trading.

AlvoSwap's core innovations include unified liquidity pools, a trust-minimized cross-chain messaging protocol, and resistance to miner extractable value (MEV). The platform is designed to be permissionless and composable, allowing anyone to create pools or integrate the router. Security measures include smart contract audits, a bug bounty program, and a DAO-controlled timelock for upgrades. The token economy is designed to be sustainable, with a fixed maximum supply and value accrual from product usage.

The platform seeks to offer a user-centric experience by abstracting away network complexity and providing a single interface for cross-chain swaps. AlvoSwap's architecture includes a Core AMM Engine for concentrated liquidity and a Cross-Chain Engine (CCE) that uses LayerZero V2 and zk-proof relayers for cross-chain communication. The project's roadmap includes phased deployment, expansion to more networks, and integration with other DeFi protocols.

Core AMM Engine

AlvoSwap's Core AMM Engine is a concentrated-liquidity constant-product market maker inspired by Uniswap v3 but extended in three dimensions:

• Adaptive Tick‐Spacing – The pool deployer selects a volatility tier (e.g., 5 bps, 30 bps, 100 bps). Tick‑spacing is set algorithmically from on‑chain volatility oracles and can tighten during periods of high volume to maximise capital efficiency without redeploying the pool. ^[1]
• Vault‐Separated Balances – Token balances are held in an ERC‑4626‑compatible Vault contract while the AMM only tracks virtual reserves. This isolates deposit risk from swap logic and enables flash‑loan‑free rebalancing. ^[1]
• Dual‐Curve Routing – Each swap traverses a primary constant‑product curve and, if the trade would cause > 0.3% price impact, automatically spills into a stable‑swap sub‑curve (à la Curve) for the portion near parity, reducing slippage on correlated pairs. ^[1]

Cross-Chain Engine

The Cross‑Chain Engine (CCE) is designed to sit between the Core AMM and a trust‑minimized messaging layer built on LayerZero V2 with zk‑proof relayers for independent verification. ^[1] Instead of locking tokens in a bridge and minting wrapped IOUs, the CCE treats each connected chain as a liquidity shard:

1. A Canonical Vault on Ethereum holds the source tokens. ^[1]
2. Satellite Pools on BNB Chain, Solana (SPL), TON (Jetton), and Bitcoin Taproot track virtual balances that correspond 1‑to‑1 with reserves in the Canonical Vault. ^[1]
3. Cross‑chain swaps atomically adjust these virtual balances and settle the user's output tokens on the destination chain—no custodial escrow, no wrapped assets. ^[1]

Security Layer

AlvoSwap's security design assumes the following adversaries:

• On‑chain attackers seeking re‑entrancy, overflow, or logic flaws. ^[1]
• Bridge/relayer adversaries attempting packet replay or censorship. ^[1]
• Governance capture via token accumulation or delegate‑bribing. ^[1]
• Infrastructure compromises at RPC, DNS, or front‑end layers. ^[1]

Runtime Protections

• Global Circuit Breaker: If pool price deviates > 1% from oracle TWAP or vault TVL drops > 2% intra‑block, swap() reverts chain‑wide until DAO review. ^[1]
• Per‑Pool Pausability: LPs can vote‑signal a soft‐pause; requires DAO‑executed hard‑pause within 6 hours or pool auto‑unpauses. ^[1]
• Rate‑Limiters: Cross‑chain Executor enforces 1‑tx/second per satellite pool, thwarting spam‑flood attacks. ^[1]
• zk‑Proof Verification: All LayerZero packets embed Merkle roots of Canonical Vault balances; mismatches trigger automatic haltGlobal() across chains. ^[1]

Tokenomics

The AlvoSwap token (ALVO) is designed with a fixed maximum supply of 10,000,000,000 tokens. ^[1]

Allocation

• User Motivation: 40% ^[1]
• Liquidity Mining: 25% ^[1]
• Team & Advisors: 15% ^[1]
• Ecosystem Reserve: 10% ^[1]
• Marketing: 10% ^[1]

Utilities

• Governance: ALVO holders can participate in the on-chain governance system, with voting and proposal rights. ^[1]

Governance

AlvoSwap utilizes a DAO (Decentralized Autonomous Organization) for governance. Key upgrades are gated by a 7-day DAO timelock and can only be executed by the on-chain Governance Executor. ^[1] A 3-of-5 Security Council can veto malicious upgrades, with council members elected every 6 months by veALVO holders. ^[1]