Tycho now supports Hooks and more DEXs

Tycho now indexes, simulates, and executes over novel DEX designs. This includes rebasing tokens, Uniswap v4 hooks, and oracle-dependent pools.

Here’s how we simplify even the most complex DEXs.

DEX innovations cause integration nightmares

DEXs innovate faster than solvers and routers can integrate them.

Every new DEX design requires solvers and aggregators to write custom integrations, which takes weeks or months per protocol – whether for oracles, rebasing tokens, or hooks. By the time you integrate one new design, three more have launched.

Specifically, protocols now increasingly have dynamic dependencies on external state, for example:

• Balancer v3 pools depend on Chainlink oracles for rate calculations.
• Rebasing tokens, such as stETH, have live exchange rate updates.
• Uniswap v4 hooks can call arbitrary external contracts.
• Some DEXs use liquidity from lending markets, like Eulerswap and Fluid.

To integrate them, you must capture every dependency and retrace them when the critical slots for swap simulations update; tracing these dependencies manually would be exhausting. 

Solution: DCI – Dynamic Contract Indexing

Tycho's new Dynamic Contract Indexing (DCI) system resolves the integration nightmare. DCI automatically traces and indexes any contract on which a DEX depends.

How Tycho’s DCI works

1. When Substreams detects a new pool, it tells DCI the initial function call to trace (EntryPoint). It then shares the interface for that call (Trace Data). 
2. DCI traces this entry point, sampling from the possible swap parameters, and records all contracts that are called during simulation.
3. DCI identifies and stores a list of retrigger slots – storage slots that contain critical addresses (like oracles or proxies) that could change the execution path, and affect swaps.
   
   • If Substreams reports an update to a retrigger slot, DCI automatically re-traces to discover new dependencies. Then it indexes any newly found contracts.

This is how Tycho discovers all the data that swap simulations need. It then streams that data to your local client. 

Design benefits

Zero RPC calls ensure fast simulations: DCI discovers, indexes and streams you all state. This means you don’t need to make any RPC calls when you simulate a swap. You can simulate extremely fast locally.

Effortless integration. DCI automatically adapts to complex DEX designs and edge cases. You can simulate any protocol without needing to understand its internal mechanics. And retriggers keep you up to date with protocol upgrades. This means adding complex protocols to your router will cost you zero effort. 

Reliable execution. DCI eliminates simulation reverts caused by missing dependencies on complex protocols so you always have complete data.

Automatically route through hooks

DCI handles complex, dynamic designs. Uniswap v4 Hooks are a great example. Because hooks can call any external contract, their dependencies are unpredictable. And integrating them with traditional indexers is nearly impossible.

Tycho handles hooks with two specialised components:

1. A hook-aware extractor to understand the beforeSwap and afterSwap calls and events between the v4 Pool Manager and the hook. This correlates state changes on all contracts to build a complete execution trace of the swap.
2. A simulation handler to ensure hooks behave correctly during local simulation. To function, hooks need a specific Pool Manager state, like being "unlocked", so the dedicated simulation handler recreates this environment.

Because Tycho DCI can handle complex designs: 

• Tycho automatically indexes composable hooks, like hooks with dynamic fees.
• Native speed is available, so performance-critical hooks can skip the VM and implement their logic analytically (“native”).
• External liquidity hooks are now compatible – even hooks that source liquidity from other protocols.
• Non-composable hooks are coming soon, like hooks needing signatures, offchain data, or proofs.

Integrations no longer restrain your growth 

• As a DEX team, you can ship new pool types and hooks. And you can get orderflow from solvers and routers immediately. Get volume from day 1. 
• As solvers or market makers, you can upgrade to the latest version of Tycho Indexer. You can then route through new DEXs like Eulerswap, Angstrom, Fluid and win more flow. Quickstart docs. 

Join telegram: tycho.build to integrate or contribute. For partnerships, message @tanay_j.