V2 Liquidity
Last updated
Last updated
MonoSwap's V2 AMM is based on the UniV2 constant formula, with a custom implementation of a Solidly-type logic for stables.
The MonoSwap AMM is the core of our ecosystem-oriented approach, designed with the following principles in mind:
A high level of flexibility and customization
An optimized trading efficiency for users
Providing support to protocols' growth by adapting to their needs
This reflection led us to develop our AMM V2, which includes a dual-liquidity model for our pairs and introduces dynamic directional fees as well as a swap referral mechanism for partnering apps.
Each MonoSwap LP can have its own type, depending on the expected price correlation level between the two tokens of the pair.
Volatile pairs are composed of uncorrelated assets, based on the usual UniV2 model, using the standard constant product formula:
Stable pairs are used for correlated assets, and will try to maintain a 1:1 transfer ratio as much as possible. The formula is based on the well-known Solidly curve:
Assuming that one size does not fit all, we provide adjustable swap fees based on market conditions and protocols' specifics.
MonoSwap pairs can be configured with their own swap fees, but it's also possible for each of them to be set up with different values depending on the swap direction (buying or selling). As a result, we have the freedom to incentivize every pair differently, depending on the volatility or stability of its assets, as well as on the structure of protocols and their own custom needs (an established project seeking to reduce friction, a newly launched project aiming to stabilize and limit selling pressure, etc...).
Each project launching on our AMM and willing to work with us can have its LPs configured with specific swap rates tailored to suit its own strategy. Ultimately, we intend to provide the possibility for partnering protocols to directly take control of their own pairs' swap fees.
The swap referral is aimed directly at partners and projects that want to become a part of our ecosystem. Every partnered project can add its referral address to each transaction made on MonoSwap through its DApp, and subsequently receives a part of their users' generated swap fees. This results in a win/win situation in which all MonoSwap actors are adequately rewarded, thereby fostering a fair and sustainable ecosystem.
The swap referral can only be used by whitelisted partners. It cannot be used by single users or unapproved projects.
To inquire about our services if you are a new or existing project developer, please contact us directly.
