Algebra Launches Gas Fee Auction Plugin to Capture MEV Value

**Supernova DEX is now live on Ethereum mainnet**, becoming the second Algebra-powered exchange on the network. **Key features:** - Built as a **Unified Liquidity Hub** for Ethereum - Addresses **fragmentation across rollups and L2s** - Powered by **Algebra Integral** technology - Part of the **Superverse ecosystem** This launch strengthens Algebra's presence on Ethereum, following previous deployments including Henesys DEX on MapleStory's permissioned chain and Satsuma DEX on Citrea. Algebra Integral provides modular DEX infrastructure with concentrated liquidity, dynamic fees, and V4 plugins - enabling customizable exchange solutions across multiple chains. The deployment continues Algebra's expansion strategy of powering 90+ DEXes across EVM chains with white-label, production-ready infrastructure.

Algebra has implemented Paradigm's MEV tax concept as a modular plugin, now live on OP Stack chains. The Gas Fee Auction feature requires approximately 15,000 gas per swap. **Key Features:** - Modular design eliminates need for protocol upgrades - Plug-and-play implementation for immediate deployment - Built on Paradigm's MEV tax framework This follows Algebra's October collaboration with ReflexMEV, which generated $64K in revenue from $11M protected volume in two weeks on Gliquid. The modular approach allows DEXes to adopt MEV protection without waiting for core protocol changes.

**Algebra Labs** tested its **Dynamic Fee** mechanism against static fees using real ETH/USDT data from 2025. The results show adaptive fees outperformed matched static fees by generating **~3.5% more cumulative fees** for liquidity providers. **Key findings:** - Dynamic Fee achieved **18.0% fee APR** vs. 16.9% for static fees at the same average level - The mechanism adjusts fees based on market volatility—keeping them low during calm periods to attract organic traders, and raising them when arbitrage risk increases - Performance remained consistent across parameter ranges, indicating robustness **How it works:** The system distinguishes between two trader types: - **Noise traders** (organic users) generate real revenue and prefer competitive fees - **Arbitrageurs** extract value from LPs through price misalignments Algebra's **Sliding Fee** plugin complements this by targeting repeated same-direction trades (typical arbitrage patterns) while preserving low fees for natural users—improving LP outcomes by up to 15% in certain conditions. **The trade-off:** Static fees remain simpler and work well in low-volatility environments. But when markets move, adaptive mechanisms capture more value without overcharging users. Algebra powers 90+ DEXes including Camelot, THENA, and QuickSwap. [Learn more](https://algebra.finance/)

Algebra has launched its white-label CLAMM (Concentrated Liquidity AMM) solution for builders looking to deploy next-generation DEXes. The offering includes: - **Concentrated liquidity** with dynamic fees - **V4 plugins** for modular functionality - **ve(3,3) tokenomics** out of the box - **Rapid deployment** in weeks instead of months The solution eliminates the need to build from scratch, allowing teams to integrate Algebra's production-ready infrastructure and launch quickly. This follows recent ecosystem growth, with Algebra powering 90+ DEXes across EVM chains including Henesys DEX on MapleStory and Satsuma on Citrea. Algebra's modular architecture enables customization through plugins while maintaining a battle-tested core. Teams can add features like KYC, limit orders, and custom fee models without disrupting existing liquidity. Interested builders can apply at [algebra.finance/form](http://algebra.finance/form/)