Trading
Liquidity
Liquidity is the number of pairs of two cryptocurrencies in the pool, X and Y. The engine maintains a tradable curve with a function X x Y = K. The exchange cryptos does not change the value of K, regardless of the exchange fee. Both the commission generated by the exchange and the additional liquidity injected will make K larger, and liquidity must be injected in both cryptocurrencies at the same time.
The first time a pool injects liquidity, the injection ratio, i.e. the pricing, can be customized and the engine will withhold 0.00000001 of the liquidity that remains in the pool permanently to ensure that the pool is not drawn down and the price is reset; subsequent liquidity injections must be proportional to the pool at the time, and deviations of more than 1% will be withdrawn by the engine for a refund.
The source of revenue for providing liquidity is primarily the redemption fee, which remains in the pool and grows the pool's liquidity depth as a result of a steady stream of transactions.
Redemption Price
The exchange price is determined solely by the depth of the pool and the number of orders placed.
The price of the pair changes over time as the transaction progresses. The problem is that when the engine processes your order, the price may not be the same as it was when the order was placed, and if there is a large deviation, it will be filled at a price that is very different from the expected one. To avoid this situation, ExinSwap has a mechanism to determine the slippage of transactions, and supports custom configuration. When placing an order, a minimum purchase amount will be submitted at the same time, and if the amount of coins bought is less than this amount, the order will be cancelled and refunded.
Impermanent loss
Impermanent loss, also known as non-permanent loss and temporary loss.
Users provide liquidity to the platform and there is a risk of loss, known as impermanent loss. Due to the design mechanism of the Automated Market Maker (AMM), the AMM platform may not be able to change prices automatically when external prices change without the intervention of an arbitrageur. External arbitrageurs profit from the spread between the platform and external exchanges. At the same time, the user, who provides liquidity to the platform, suffers a loss.
Once this happens, users have no incentive to participate because they were hoping to make a profit, but they lose money because of the spread. As a result, they lose money by providing liquidity on an automated market maker platform when they could have made greater profits on a centralized exchange.
Automatically refund
When you provide liquidity in ExinSwap, if only one crypto is deposited by mistake, ExinSwap will cancel the order and give you a refund after "5 minutes". The returned crypto is automatically refunded into your Mixin wallet.
In addition, when you provide liquidity and both cryptocurrencies are deposited, it is also possible to return excess cryptocurrencies on a pro-rata basis.
LP Token
LP Token mainly refers to the certificate of a liquid market maker, which is a market making Token issued by the DEX decentralized trading system to market makers, and can also be understood as the equity share of a certain token.
Take USDT-XIN trading pair as an example, its corresponding LP Token is called "USDT-XIN", or "USDT(Ether)-XIN(Ether) LP Token", the Asset ID on Mixin Network is e2e4e54a-92f4-3677-ba57-f2555d7cb019. You can view LP Token's transaction history in Mixin Snapshots.
LP Token lists
| Symbol | Mixin Snapshots |
|---|---|
USDT-XIN | |
WGT-XIN | |
USDT-WGT | |
USDT-EOS | |
EOS-BTC | |
USDT-BTC | |
ETH-USDT | |
BTC-XIN | |
ETH-XIN | |
EOS-XIN | |
USDT-BOX | |
ETH-BTC | |
pUSD-USDT | |
pUSD-BTC | |
pUSD-XIN | |
pUSD-MOB | |
pUSD-ETH | |
pUSD-EOS | |
pUSD-BOX | |
XIN-MOB | |
ETH-EOS | |
BTC-MOB | |
BTC-BOX | |
DOT-XIN | |
DOT-BTC | |
pUSD-DOT | |
pUSD-UNI | |
UNI-BTC | |
UNI-XIN | |
ONE-XIN | |
ONE-BTC | |
ONE-pUSD | |
PRS-XIN | |
PRS-BTC | |
pUSD-PRS | |
pUSD-VCASH | |
VCASH-BTC | |
VCASH-XIN | |
pUSD-DOGE | |
DOGE-BTC | |
DOGE-XIN | |
GRIN-pUSD | |
GRIN-BTC | |
GRIN-XIN | |
USDT-USDT | |
USDT-USDT | |
PRS-BOX | |
CANDYBOX-pUSD | |
CANDYBOX-XIN | |
CANDYBOX-BTC | |
FIL-pUSD | |
FIL-XIN | |
FIL-BTC | |
BNB-pUSD | |
BNB-XIN | |
BNB-BTC | |
XRP-pUSD | |
XRP-XIN | |
XRP-BTC | |
pUSD-LTC | |
LTC-XIN | |
LTC-BTC | |
pUSD-LINK | |
XIN-LINK | |
BTC-LINK | |
pUSD-ZEN | |
ZEN-XIN | |
ZEN-BTC | |
pUSD-BCH | |
XIN-BCH | |
BTC-BCH | |
TRX-pUSD | |
TRX-XIN | |
TRX-BTC | |
pUSD-BTT | |
BTT-XIN | |
BTT-BTC | |
pUSD-XLM | |
XLM-XIN | |
XLM-BTC | |
pUSD-USDC | |
WBTC-BTC | |
SOL-XIN | |
SOL-BTC | |
pUSD-SHIB | |
XIN-SHIB | |
BTC-SHIB | |
DOGE-SHIB | |
ETH-SOL | |
pUSD-RUM | |
RUM-XIN | |
RUM-BTC |
Revenue distribution
The fees received go directly to the pool, and the LP Token represents the equity in the pool. In simple terms, your LP Token equity increases and is worth more coins, and the additional fees is earned.
Route
The Route function is simply the best route to convert any cryptocurrency, even if the pair is not available at the time of liquidity deposit.
For example, currently ExinSwap does not have a WGT-EOS pair, but you can convert WGT to EOS, and the execution of the transaction will automatically find the best route, for example, the current exchange route to convert WGT to EOS is: WGT->USDT, USDT-> EOS, that is, uses USDT as a transit. The actual conversion path for converting A to B can be more complicated than this.
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