Core concepts
DEX Functionalities
Before concentrated liquidity there was only one major liquidity solution across the broader defi, we coin this term as "Uniswap v2" pools and below we will discuss its implementation into Ramses.
Swaps
On RAMSES, similar to other decentralized exchanges (DEXs), users can swap tokens for others. The slippage and trade price are determined based on the total value locked in the liquidity pairs and whether arbitrage activities have balanced the pool to its market rate.
RAMSES features two types of Liquidity Pools, each with its own swap curve:
Volatile (UniV2-Style): This is the basic type of pool where tokens are paired with equal weights i nterms of dollar value. The volatile swap curve is used to facilitate trades within these pools. The math for these pools is as followed:
Correlated (Andre-Style): RAMSES utilizes a stable swap curve that is an efficient implementation compared to other DEXs. The stable swap curve, originally devised by Andre, offers near-zero slippage and is designed to honor his innovative approach to stable swaps. The math for these pools is as followed:
A more technical visual of the ve(3.3) Swap Curves
To provide a graphical representation of the ve(3,3) swap curves, the graph below illustrates the variance between 0 and 100. It demonstrates that the Green (Correlated) curve exhibits less slippage from the mean as the K value fluctuates.
This visualization, as complicated as it may seem, helps users understand the behavior of the swap curves and the corresponding slippage levels associated with different values of K. RAMSES aims to provide an optimized trading experience with minimal slippage, enhancing liquidity provision and ensuring efficient token swaps for users.
Speaking of swap fees!
Fees are dynamic, to ensure the competitiveness and attractiveness for veRAM holders.
The theoretical MIN and MAX for legacy fees is (1<= Fee <= 1000bps). This means the minimum fee is 0.01%, and the highest is 10.00%.
Liquidity Provider Staking
Legacy pool tokens can be staked to earn RAM emissions, any extra liquidity incentives, and accrue auto-compounded swap fees! Once you have the LP tokens, you can deposit them within their corresponding gauge (if the pool is whitelisted), and start earning rewards in real-time!