In a recent episode of our Constellation HyperCast podcast, we spoke with Alex Brandes, CTO of Constellation Network, and João Carvalho, Director of Product. The conversation focused on the upcoming Tessellation v3 Upgrade, a major evolution for the Constellation ecosystem.
Their insights provided a detailed look into how this upgrade redefines interaction within the Hypergraph, enables DeFi applications, and opens staking participation to the wider community. Tessellation v3 introduces tools that make the network more flexible, secure, and interoperable. These changes also allow Constellation to better compete with established blockchain ecosystems.
🔭 CONSTELLATION HYPERCAST
— Generation Infinity (@GenfinityIO) April 22, 2025
Join @codebrandes and @joaopfc for an exclusive deep dive into major upcoming @Conste11ation DAG network updates — including 8 new transaction types, node collateral + delegated staking, PacaSwap DEX upgrades, and much more! https://t.co/mI4LAoaAWa
Tessellation v3: A Deep Dive into the Upgrade That Changes Everything
What is Tessellation v3?
Tessellation v3 marks the most significant set of upgrades since the launch of Metagraphs in 2023. The upgrade focuses on making the Constellation Hypergraph more functional for financial use cases, particularly those involving token swaps, staking, and liquidity.
According to Alex Brandes, “Tessellation V3 isn’t just a network upgrade — it’s a leap forward for the entire Web3 movement, unlocking new ways to build, stake, and exchange value.” New transaction types, token standards, and security measures allow Constellation to offer features previously missing when compared to major EVM-based chains.
João Carvalho emphasized that this upgrade brings Constellation “on par with what you expect from major networks like Ethereum or Solana,” especially in DeFi functionality. Importantly, these improvements are native to Constellation’s architecture, preserving its unique advantages like feeless transactions and DAG-based scalability.
👀 Tessellation V3 is shaping up to be one of the most important upgrades in Web3 infrastructure.
— StardustCollective (@stardustco11ect) April 24, 2025
It’s the core protocol that powers the Hypergraph — and it’s unlocking atomic swaps, Delegated Staking, secure node ops, and real composability across Metagraphs.
This breakdown… https://t.co/fLiqm2mHfu
New Transaction Types and Protocol Changes: Unlocking a Smarter Hypergraph
Tessellation v3 introduces several new transaction types that significantly expand what users and developers can do on the network. These include:
- Allow Spend: Grants short-term authorization for a Metagraph or another wallet to spend from a user’s wallet.
- Example: Authorize PacaSwap to pull funds when a swap is matched.
- Spend: Enables Metagraphs to execute spend actions from their own balance or from an Allow Spend authorization.
- Example: Completing a token swap initiated through Allow Spend.
- Token Lock: Allows users to lock DAG or L0 tokens inside their own wallet, making them non-spendable until conditions are met.
- Example: Locking DAG to support validator collateral or delegated staking.
- Atomic Action: Bundles multiple actions together, guaranteeing that all actions succeed or fail together.
- Example: Ensuring both sides of a swap execute simultaneously or not at all.
- Fee Transaction: Allows Metagraphs to pay network snapshot fees without needing manual intervention.
- Example: PacaSwap pays a snapshot fee when processing a batch of trades.
- Withdraw Lock: Initiates the withdrawal of previously locked tokens, often used when unstaking.
- Example: Start a 21-day unlock period to withdraw staked DAG.
- Stake Delegation: Enables a user to delegate locked DAG to a validator node to earn staking rewards.
- Example: Delegate 5,000 DAG to a node offering competitive returns.
- Stake Reassignment: Lets users reassign their delegated stake between validators instantly without penalties.
- Example: Move delegation to a new validator offering higher rewards.
Together, these transaction types form the foundation for a wide range of applications from tokenized economies to decentralized trading, all while ensuring security and seamless user experience.
Delegated Staking: Power to the Community
Delegated staking opens up participation in network validation to any DAG holder. Users can lock DAG tokens and delegate them to validator nodes through the DAG Explorer platform. Validators share rewards with their delegators after deducting a small fee.
Delegation enables broader community involvement without the need for technical skills or large capital requirements. Users can even split their stakes across multiple validators or reassign their stake at any time.
João described it succinctly: “Delegated staking will turn forty thousand wallets into active participants overnight.” This feature not only secures the network but also promotes engagement and economic stability within the ecosystem.
With Tessellation V3 – Our biggest network upgrade – Delegated Staking goes live.
— Constellation Network (@Conste11ation) April 17, 2025
✅Stake $DAG through Stargazer or DAG Explorer.
✅Pick a validator. Switch anytime.
✅No lock-in, no middlemen.
Put your $DAG to work. pic.twitter.com/4ucfTRoYpk
Node Collateral and Slashing: Securing the Hypergraph
Validator nodes must now provide locked DAG as collateral. This strengthens economic security by ensuring validators are financially invested in the network’s integrity.
If a node misbehaves or validates malicious transactions, it risks losing a portion of its staked collateral through a slashing mechanism. Additionally, validators face a mandatory 21-day withdrawal period, which provides stability against rapid exits.
This system creates strong incentives for validators to act honestly, while giving users confidence that the network’s security has real financial backing.
PacaSwap and the Birth of DeFi on Constellation
PacaSwap will be the first decentralized exchange operating directly on Constellation Network. It takes advantage of every Tessellation v3 upgrade, including atomic swaps and L0 token standards.
Through PacaSwap, users will be able to swap tokens across Metagraphs instantly and without centralized intermediaries. Liquidity pools, governance, and rewards systems will further enhance the DEX experience.
As Alex noted, “PacaSwap demonstrates what becomes possible when atomic transaction capabilities and decentralized liquidity meet within a DAG-based architecture.” PacaSwap will remove barriers for Metagraph projects, allowing them to create liquid markets for their tokens immediately after launch.
DAG Explorer Evolution: Managing Your Network Life
The DAG Explorer is being revamped to support Tessellation v3 functionality. Users will be able to:
- View total DAG locked across the network.
- Track delegation positions and validator rankings.
- Manage token locks and monitor unlock periods.
- Review history of complex transactions like staking, swapping, and fee payments.
The changes turn DAG Explorer from a basic blockchain viewer into a full network management platform. João highlighted how “users can now interact, manage, and optimize their participation all from one intuitive interface.”
[LEAKED] Internal Screenshot
— Constellation Network (@Conste11ation) March 8, 2025
Delegated Staking will change everything for DAG Network. The explorer is the hub, update isn’t public yet.
I probably shouldn’t have shared this. If they cut my access… remember, I tried.
— Franklin the Intern 😶💻 pic.twitter.com/QourGUA9ry
Insights from Our Interview with Alex and Joao
Our conversation with Alex and João illuminated several key themes beyond the technical changes.
First, the security-first mindset behind Tessellation v3 became clear. The team deliberately avoided common design flaws seen in Ethereum DeFi (like unlimited token approvals) by implementing time-limited allowances and atomic swap guarantees.
Second, the upgrade was crafted with developer experience in mind. Alex emphasized that the goal was to “make interacting with tokens and swaps on Constellation feel just as intuitive as on major chains like Ethereum or Solana.”
Finally, both speakers stressed the community-driven growth that delegated staking will unleash. João noted, “Delegated staking creates natural incentives for validators and projects to engage the community, build trust, and innovate with incentives.”
This upgrade is the door to an explosion of new use cases, new projects, and a more decentralized future for Constellation Network.
João Forte Carvalho – Director of Product – Constellation
Looking Ahead: Constellation’s Competitive Future
The Tessellation v3 upgrade positions Constellation Network to compete more effectively within the blockchain industry. With this release, the network now supports delegated staking, atomic swaps, custom token standards, on-chain fee management, and validator slashing. These capabilities bring Constellation in line with features expected from leading Web3 ecosystems.
At the same time, Constellation maintains its core strengths. The network continues to offer feeless transactions, DAG-based scalability, and native interoperability between independent Metagraphs. This combination sets it apart from many traditional Layer-1 blockchains that rely on linear chains and gas models.
With these enhancements, Constellation can now meet the needs of decentralized finance, tokenization, and cross-chain applications. DeFi projects like PacaSwap and future Metagraph launches will drive liquidity, adoption, and broader utility across the Hypergraph.
Against an increasingly competitive backdrop, Constellation now matches — and in some areas surpasses — the capabilities of established EVM-based networks like Ethereum and Solana. This shift opens the door for stronger adoption, rising total value locked (TVL), and a growing developer community. Stay tuned to Genfinity.io for more deep dives, updates, and exclusive interviews from across the blockchain world.
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