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+---
+title: "Reduce LLM API Costs with Entroly MCP and Continue"
+description: "Use Continue with the Entroly MCP server to compress context by 70-95%, align provider caches, and cut LLM API bills without losing answer quality."
+sidebarTitle: "Cost Reduction with Entroly"
+---
+
+
+ A cost-optimized AI coding workflow that uses Continue with the Entroly MCP server to:
+ - Compress context by 70-95% before sending to the LLM
+ - Align prefixes for provider cache discounts (Anthropic 90%, OpenAI 50%)
+ - Verify model outputs against supplied evidence with WITNESS
+ - Monitor real-time savings via a local dashboard
+
+
+## Prerequisites
+
+Before starting, ensure you have:
+
+- Continue installed in your IDE (VS Code, JetBrains, etc.)
+- Python 3.10+ installed
+- An LLM API key (Anthropic, OpenAI, etc.)
+
+## Setup
+
+
+
+ ```bash
+ pip install entroly
+ ```
+
+
+
+ Add the following to your Continue config:
+
+ ```yaml title="config.yaml"
+ mcpServers:
+ - name: Entroly
+ command: uvx
+ args:
+ - "--from"
+ - "entroly"
+ - "entroly"
+ - "serve"
+ ```
+
+
+
+ Launch Continue and type `@` — you should see Entroly in the context providers list.
+
+ Try asking:
+ ```
+ Use Entroly to analyze this repository and show me the token savings estimate.
+ ```
+
+
+
+## Alternative: Proxy Mode
+
+For transparent cost reduction without changing your Continue config, run Entroly as a local proxy:
+
+```bash
+entroly proxy
+```
+
+Then update your provider's base URL in Continue to point at the proxy:
+
+```yaml title="config.yaml"
+models:
+ - name: claude-sonnet
+ provider: anthropic
+ apiBase: http://localhost:9377
+```
+
+All requests are compressed transparently — no other config changes needed.
+
+## How It Works
+
+```
+Continue IDE ──► Entroly (local) ──► LLM Provider
+ │
+ ├─ Rank repo files (BM25 + entropy + dep-graph)
+ ├─ Select under budget (knapsack, reversible)
+ ├─ Cache-align prefix (keep provider cache hot)
+ └─ Verify the reply (WITNESS hallucination guard)
+```
+
+## Monitor Savings
+
+Open the Entroly dashboard to see real-time cost metrics:
+
+```bash
+entroly dashboard
+# Opens http://localhost:9378
+```
+
+The dashboard shows:
+- Tokens saved per request
+- Cumulative dollar savings
+- Cache hit rates
+- Per-lever cost breakdown
+
+## Key Benefits for Continue Users
+
+| Feature | Benefit |
+|---|---|
+| **Context compression** | 70-95% fewer input tokens on large repos |
+| **Cache alignment** | Captures provider prefix-cache discounts |
+| **Reversible compression** | Original context recoverable via CCR handles |
+| **WITNESS guard** | $0 hallucination check on every response |
+| **Local-first** | No code sent for analysis — runs on-device |
+
+## Resources
+
+
+
+ Full documentation, benchmarks, and source code
+
+
+ How MCP works with Continue agents
+
+