Overview
Ekubo is the leading decentralized exchange on StarkNet, the ZK-rollup layer-2 built by StarkWare. The protocol implements concentrated liquidity AMM functionality (similar to Uniswap V3) natively in Cairo, StarkNet's programming language, taking advantage of the chain's unique properties including proof-based computation verification and native account abstraction.
Ekubo was developed with a focus on extensibility — the protocol supports custom "extensions" that can modify pool behavior, enabling features like oracle integration, custom fee structures, and specialized LP strategies. This modular approach allows the DEX to evolve without requiring full contract redeployment.
The protocol captured the majority of DEX volume on StarkNet, benefiting from being the technically strongest AMM on the chain. Ekubo was notably offered a grant by the Starknet Foundation, and its development has been closely aligned with StarkNet's ecosystem growth strategy.
Smart Contracts
Cairo-Native Implementation
Ekubo is written entirely in Cairo, StarkNet's native language designed for provable computation. Cairo's design means all Ekubo operations generate validity proofs as part of StarkNet's ZK-rollup verification, providing cryptographic guarantees of correct execution. This is a fundamentally stronger execution guarantee than optimistic rollups or L1s.
Extension System
Ekubo's extension mechanism allows developers to attach custom logic to pools. Extensions can implement custom fee structures, oracle callbacks, dynamic parameters, and specialized LP management. This modular design is forward-looking, enabling ecosystem developers to build on Ekubo's core AMM without modifying the base protocol.
Singleton Design
Similar to Uniswap V4's approach, Ekubo uses a singleton contract pattern where all pools exist within a single contract. This design enables gas-efficient multi-hop swaps and cross-pool operations, reducing overhead for complex trading routes.
Security
ZK-Rollup Guarantees
StarkNet's ZK-rollup architecture provides cryptographic verification of all computation, meaning Ekubo's swap execution is mathematically verified as part of the L2 proof generation. This provides a stronger correctness guarantee than execution on L1 or optimistic rollups.
Cairo Audit Ecosystem
Cairo smart contract auditing is a smaller and less mature field than Solidity auditing. Fewer security firms specialize in Cairo, meaning the depth of security review available to Ekubo is inherently less than for EVM protocols. This is a significant limitation.
Track Record
Ekubo has operated on StarkNet without a major exploit. The protocol has handled StarkNet's transaction volumes without incident. However, StarkNet's overall DeFi activity is still developing, meaning Ekubo has not been stress-tested at the scale of major Ethereum DEXs.
StarkNet Infrastructure Risk
As an L2 DEX, Ekubo depends on StarkNet's infrastructure — sequencer operation, proof generation, and L1 settlement. StarkNet's sequencer is currently centralized (operated by StarkWare), introducing infrastructure dependency. Sequencer downtime or issues directly affect Ekubo's availability.
Liquidity
StarkNet Liquidity
Ekubo holds the majority of DEX liquidity on StarkNet, but StarkNet's total DeFi TVL remains modest compared to Arbitrum, Optimism, or Base. Liquidity for major pairs (ETH/USDC, ETH/USDT) is functional but thin compared to equivalent L2 DEXs. Long-tail token liquidity is limited.
Concentrated Liquidity Efficiency
The concentrated liquidity model means Ekubo's effective depth is better than raw TVL numbers suggest. LPs who actively manage positions around current prices provide tight spreads for common trading pairs. Active LP management tools help optimize capital deployment.
Bridge-Dependent
StarkNet liquidity depends on bridged assets from Ethereum. The bridging process adds friction for users and creates dependency on StarkNet's canonical bridge. Limited native assets on StarkNet constrain organic liquidity growth.
Adoption
StarkNet-Dominant
Ekubo captures the majority of DEX volume on StarkNet, making it the chain's primary trading venue. Integration with StarkNet wallets (Argent, Braavos) and ecosystem projects ensures Ekubo is accessible to StarkNet users.
Ecosystem Growth Dependency
Ekubo's adoption ceiling is defined by StarkNet's overall ecosystem growth. While StarkNet has strong technology and institutional backing (StarkWare), user adoption has been slower than competing L2s (Arbitrum, Base, Optimism). Ekubo's growth is tightly coupled to StarkNet attracting more users and applications.
Developer Interest
The extension system has attracted developer interest for building custom AMM features on StarkNet. Cairo developers can leverage Ekubo's core for specialized DeFi applications, though the developer ecosystem remains small.
Tokenomics
Limited Token Information
Ekubo's token distribution and governance structure are still developing. The protocol received significant support from the Starknet Foundation, and tokenomics design is expected to incorporate both governance and protocol revenue sharing.
Revenue
Trading fees generate revenue proportional to StarkNet's DEX activity. Current revenue is modest given StarkNet's developing adoption but could scale significantly if the chain achieves broader traction.
Risk Factors
- StarkNet ecosystem dependency: Ekubo's success is entirely tied to StarkNet's growth trajectory, which has been slower than competing L2s.
- Cairo audit limitations: The smaller Cairo security ecosystem provides less thorough audit coverage.
- Centralized sequencer: StarkNet's centralized sequencer creates single-point-of-failure infrastructure risk.
- Bridge dependency: Liquidity depends on bridged assets, adding friction and bridge risk.
- L2 competition: Arbitrum, Base, and Optimism have stronger DeFi ecosystems, drawing users away from StarkNet.
- Tokenomics uncertainty: Incomplete tokenomics design limits investment thesis clarity.
Conclusion
Ekubo is a technically strong DEX that leverages StarkNet's ZK-rollup capabilities effectively. The Cairo-native implementation, extension system, and singleton design demonstrate sophisticated protocol engineering. For StarkNet's ecosystem, Ekubo is essential DEX infrastructure.
The 5.4 score reflects solid technical fundamentals constrained by StarkNet's still-developing ecosystem. Ekubo's fate is inextricably linked to StarkNet's ability to attract users and capital — a proposition that remains uncertain despite strong underlying technology. If StarkNet achieves its growth potential, Ekubo is well-positioned to be the chain's dominant DEX. The risk is that StarkNet remains a smaller L2 ecosystem.