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Speculative AMM
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sAMM Features
As mentioned in DEXG Swap: Introduction, DEXG Swap and the volatility-based pricing algorithm of the Speculative AMM (sAMM) create unique advantages for its users.
Reduced Slippage
Our powerful LINK#Speculative AMM (sAMM) provides an advanced set of algorithmic functions, which massively decrease the price impact of single orders and the slippage caused in the process.
Volatlity based AMM and Constant Product AMM comparison
As seen above the sAMM utilised by DEXG Swap manages to smooth the incurred slippage, which becomes increasingly visible in comparison to the Constant Product AMM used by decentralised exchanges like Uniswap. Further, we can see that the volatility pricing function of the sAMM will not move the price in a straight line, but balance price volatility out with 'price-ticks', causing small zigzags in the pricing curve. This function is essential to decrease the slippage and fade out the volatility effect.
Single-Asset Token Pools
Token pools on DEXG Swap work different to existing liquidity provision protocols, allowing for single-asset deposits to token pools. While LPs can deposit single tokens to the pools, all pools are backed by an assigned WETH pool. In turn, all pools consist of the singular token pool and a corresponding WETH pool.
Risk of Liquidity Impermanent Loss
The Single-Asset Token Pools allow that every deposited token to the pool can be withdrawn later on by LPs again, plus their share of the trading fees accrued in the pool in the meantime. Due to the different pricing mechanism and the indirect pairing with WETH, DEXG Swap heavily incentivises arbitrage trading, ensuring the influx and outflow of tokens from the pool depending on the market sentiment. For long-term liquidity providers, this effect could negate the risk of impermanent loss.
If the pool is not able to allow a 1:1 token withdrawal due to the other possible claims of existing LPs, the withdrawing LP will get a corresponding share of the accompanying WETH pool.
Non-reliance on Price-Oracles
DEXG Swap does not rely on external price oracles to determine pricing or volatility. Instead, the data will be pulled directly from the blockchain, creating a more efficient and secure environment for traders and liquidity providers.
Liquidity Mining
Liquidity providers will automatically participate in mining LINK#GEL Tokens. The distribution and details of the liquidity mining program can be found under LINK#LiquidityMining.
Aggregator Pool
The LINK#Aggregator Pool will collect WETH as part of all trade-in fees on DEXG Exchange. DEXG holders will be rewarded these rewards by providing DEXG liquidity and participating in the governance.
Last modified 7mo ago