Supernova DEX Launches on Ethereum with Algebra Integration

Algebra has released its **Gas Fee Auction plugin**, an experimental tool implementing Paradigm's MEV tax concept for chains with competitive priority ordering like OPStack. **Key Features:** - Increases swap fees based on transaction priority, separating arbitrageurs from regular users - Allows DEXs to capture MEV as additional swap fees, improving LP economics - Adds ~15K gas per swap - Designed for advanced builders on compatible chains **Access:** - [Plugin marketplace](http://market.algebra.finance/plugin/gas-fee-auction/) - [Source code](http://github.com/cryptoalgebra/plugins-monorepo/tree/1.2.2-master/packages/fee-auction) The mechanism aims to tax MEV extractors who bid for block priority while keeping fees competitive for organic users.

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/)