Fixed Weighted AMM Pools
Cross Chain Decentralized Exchange (DEX)
A decentralized exchange (DEX) is a non-custodial digital assets exchange operating on a decentralized network like Elys. It allows for peer-to-peer (P2P) trading of cross chain assets without third party intermediaries, such as banks, government institutions, centralized exchanges etc.
DEXs play a crucial role in decentralized finance (DeFi) as trustless and permissionless liquidity hubs for trading digital assets. DEX users retain complete control over their assets (self-custody)
One of the prime models under which DEXs usually operate is an automated market maker (AMM).
Elys AMM Design
Elys offers an AMM style DEX, where users can add supported assets as liquidity, which can then be used for swapping assets, margin trading, and more. The base pair for all the AMM style pools on Elys is USDC. USDC is a neutral, non-dilutive choice that improves the UX and helps to remove base token volatility as Elys grows and attracts cross-chain liquidity. Liquidity providers (LP) will be rewarded for adding liquidity, as described in the liquidity providers section.
At inception Elys would offer Continuous Liquidity Pools (CLP) within the AMM framework. Some of the advantages of using CLP are:
Liquidity is always available for all assets on the dex.
Users can trade assets at transparent and fair prices, without relying on centralized third-parties.
Trustless on-chain price feeds for internal and external use.
Fee and reward sharing for liquidity providers in a fair and transparent manner.
By separating the AMM curve logic and math from the core swapping functionality, Elys becomes an extensible AMM that can incorporate any number of trading curves and pool types. This includes:
Traditional 50/50 weighted pools ( )
Custom weights like 70/30 for controlled exposure
Multiple Asset Pools
Pools that allow customizable parameters (base pair, swap fees etc)
Last updated