Swap

In Arcane Finance, the Swap section is a section that allows users to trade available coins

Swap Technology

Currently, we utilize Constant product AMM and StableSwap for swaps:

Constant product AMM

Constant product AMM (Uniswap V2) allows traders to directly swap from one token to another. Traders don’t trade directly with each other. Instead, they trade with a token pool that has both tokens reserved.

Constant product AMM implements new functionality that enables highly decentralized and manipulation-resistant on-chain price feeds. This is achieved by measuring prices when they are expensive to manipulate, and cleverly accumulating historical data. This allows external smart contracts to create gas-efficient, time-weighted averages of Uniswap prices across any time interval.

Stableswap

StableSwap invariant to facilitate the trading of stablecoins and other stable assets. This method is designed to offer lower slippage in stablecoin transactions compared to other common algorithms like the constant-product invariant. In this context, "stablecoins" refer to digital assets that aim to maintain a stable value relative to another asset, including fiat-pegged stablecoins (e.g., DAI, USDC), synthetic versions of cryptocurrencies (e.g., synthetic ETH), or various forms of wrapped BTC.

For technical implementations, the StableSwap algorithm combines a constant sum invariant with a constant product invariant, represented mathematically in the form of equations that account for the total amount of tokens in a pool at equilibrium. This model adjusts as the pool's balance shifts, moving towards a constant product model when significant imbalances occur.

Multi-Token Support Program (MTSP)

The MTSP allows for seamless composability in the ALEO ecosystem by supporting all functions on the ARC-20 standard. This means DeFi programs can easily transfer different tokens without importing each individual token contract.

These technologies ensure that our platform provides efficient and secure trading options for various types of tokens, enhancing the overall user experience.