Automated Market Maker (AMM)
AMM trading refers to the automatic continuous trading of tokens without a central order book that is undertaken via a liquidity pool maintained using a smart contract. Customers can trade directly with the liquidity pool, and the settlement price and quantity are computed based on a mathematical function as implemented in the AMM smart contract.
Initiate an AMM transaction
To submit an AMM transaction:
Login to your account.
From the top navigation bar, click on "AMM".
From the market list above the price chart, select the trading pair.
Select "Buy" or "Sell".
Enter the amount to trade.
Follow the on-screen prompts to grant permission to the smart contracts to access your "fiat utility token".
Note:
An Ethereum transaction fee (gas fee) will be charged to execute the AMM smart contract on the Ethereum network. Before proceeding, make sure you have sufficient ETH in your digital wallet.
Circuit breaker
A circuit breaker is a mechanism that temporarily suspends continuous trading of a trading pair when the executed price exceeds a pre-defined volatility threshold, to ensure fair and orderly trading.
Trading pairs listed in the AMM trading mode will have circuit breaker mechanisms prescribed through smart contracts that will trigger the circuit break event when the predefined threshold is exceeded.
AMM transactions and liquidity addition/removal are not permitted during the circuit breaker, which lasts between 15 and 30 minutes, depending on the trading pair. AMM transactions of the given trading pair that have not settled on the Ethereum network may also be canceled when the circuit breaker period kicks in.
Can I participate as a liquidity provider in an AMM Liquidity Pool?
Yes. All registered investors can participate in the AMM liquidity pool of a trading pair.
It is important to note that the liquidity provider will not be able to place a buy or sell order in the AMM market for that trading pair.
Adding liquidity to AMM Liquidity Pool
Login to your account.
From the top navigation bar, click on "AMM".
From the market list above the price chart, select the trading pair.
Click "Add liquidity" and enter the amount of assets you are adding to the pool.
Click "Confirm".
Follow the on-screen prompts to confirm the transaction in your ERC-20 compatible wallet.
Notes:
A transaction fee (gas fee) will be charged to validate the transaction on the Ethereum network. Before proceeding, make sure you have sufficient ETH in your digital wallet.
By providing liquidity to the AMM pool, you will receive Liquidity Tokens (LTs), which represent a Liquidity Provider's share of the pool.
Withdrawing liquidity from AMM Liquidity Pool
Login to your account.
From the top navigation bar, click on "AMM".
From the market list above the price chart, select the trading pair.
Click "Remove liquidity" and enter the amount of assets you are removing from the pool (if you want to remove all, click on the "MAX" button).
Click "Confirm"
Follow the on-screen prompts to confirm the transaction in your ERC-20 compatible wallet.
Note:
A transaction fee (gas fee) will be charged to validate the transaction on the Ethereum network. Before proceeding, make sure you have sufficient ETH in your digital wallet.
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