Hub and Spoke Architecture

Overview

The hub-and-spoke architecture is a fundamental design principle of Feels Protocol. Unlike traditional AMMs where any token can pair with any other token, Feels Protocol requires all tokens to trade through a central hub: FeelsSOL.

Why Hub-and-Spoke?

Liquidity Concentration

Instead of fragmenting liquidity across multiple pairs (ETH/USDC, ETH/USDT, USDC/USDT), all liquidity for a token concentrates in a single pool with FeelsSOL.

Simplified Routing

Direct trades: Token ↔ FeelsSOL (1 hop)
Cross trades: TokenA → FeelsSOL → TokenB (2 hops max)
No complex routing algorithms needed

Capital Efficiency

Liquidity providers only need to provide liquidity to one pool per token, maximizing capital efficiency and fee generation.

FeelsSOL Token

FeelsSOL is the hub token that:

Is minted through protocol vaults when users deposit JitoSOL via enter_feelssol
Provides base liquidity for all pairs in the hub-and-spoke model
Can be redeemed for JitoSOL through exit_feelssol instruction
Maintains backing through protocol-controlled JitoSOL reserves

Trade Examples

Direct Trade (1 hop)

USDC → FeelsSOL
FeelsSOL → BONK

Cross Trade (2 hops)

USDC → FeelsSOL → BONK
WIF → FeelsSOL → SAMO

Benefits for Traders

Better prices: Concentrated liquidity means less slippage
Predictable routing: Always know your trade path
Lower fees: Efficient routing reduces total fees

Benefits for LPs

Higher yields: Concentrated positions capture more fees
Simpler management: One pool per token
Reduced impermanent loss: Paired with stable, yield-bearing FeelsSOL