🤽Swapping & Liquidity Pools

AEX Liquidity Pools

Ascent will initially have two types of liquidity pools (AMMs), through which all trades are routed. Thanks to the integrated smart routing, trades can go through both types to ensure best price execution for traders. These battle-tested and composable AMMs make it attractive for protocols to build on top of Ascent.

AMM Technologies Used

  • vAMM — UniV2 style of the variable pool for uncorrelated assets, such as $ZEN, $BTC, and $ETH.

vAMM pools are a type of decentralized AMM that allows users to trade tokens directly with each other without the need for a central order book or intermediaries. They consist of two tokens that users can swap between, with the exchange rate determined by the relative supply and demand of each token. Users can add liquidity to a pool by providing both tokens in a certain ratio, which allows them to earn a portion of $AEX allocated to the pool. They are typically used to trade more volatile tokens, as they can quickly adjust to changing market conditions.

The formula used:

x×y=kx × y = k

  • sAMM — Curve style of stable pool for correlated or loosely pegged assets, such as $DAI, $USDT, and $USDC.

sAMM is a type of liquidity pool that is designed specifically for assets that are expected to consistently trade at near parity, such as stablecoins or synthetics. Unlike traditional AMMs, which use a constant product formula to calculate prices, sAMMs use a constant sum formula. This means that the total value of the assets in the pool is kept constant, rather than their product. When a user wants to trade one asset for another in a sAMM, their trade is matched with another user who is looking to trade the opposite pair. This helps to reduce slippage and price impact, making sAMMs particularly well-suited for stable assets. When using a sAMM with just two assets, the pool works similarly to a traditional exchange: users can place orders to buy or sell either asset, and the sAMM will match these orders with one another to facilitate trades.

The formula used:

x3y+y3x≥kx³y + y³x ≥ k

Parameters

Parameters

  • x is the amount of the first asset in the pool

  • y is the amount of the second asset in the same pool

  • k is a fixed constant

Fee Structure

Ascent's adapted fee structure enables competitive swap prices, as well as strong revenue generation for veAEX voters, leading to an increase in both locking rate and incentives for liquidity provision. The transaction fees can be adjusted over time.

  • vAMM : 0.2%

  • sAMM : 0.025

Last updated