This is part 5 of the KittenSwap series, in which we gradually present our design for the next-generation swap.
KittenSwap is at https://www.kittenswap.org/ and you can trade our first IKO (Initial KittenSwap Offering) token $LIQUID there.
In this article, we discuss a simple method to improve limit orders using AMM information.
1. The Problem with Usual Limit Orders
It is well-known that there are arbitrage opportunities in an OrderBook DEX. As an example:
- Assume the current uniswap price is 1 TOKEN = 0.1 ETH.
- Assume there is a limit order of BUY 1 TOKEN @ 0.08 ETH.
- Assume there is a limit order of SELL 1 TOKEN…
LIQUID (https://www.kittenswap.org/) has a ever-rising price floor, which means LIQUID holders will be able to lock LIQUID for risk-free ETH when our LIQUID lending contract is ready.
This lending contract will be available for all current LIQUID holders. There’s no need to do any migration.
1. Benefits for LIQUID: Less Selling, Easier Buying
For simplicity, assume the current LIQUID price is fixed at 0.2 ETH, and the price floor is fixed at 0.11 ETH.
If you buy 10 LIQUID using 10*0.2=2 ETH, then you will be able to immediately lock it for 10*0.11=1.1 ETH.
This is great for LIQUID holders, because now you can get risk-free extra capital…
This is part 4 of the KittenSwap series, in which we gradually present our design for the next-generation swap.
KittenSwap is at https://www.kittenswap.org/ and you can trade our first IKO (Initial KittenSwap Offering) token $LIQUID there.
LIQUID has a first-in-DeFi feature called AutoBoost. Whenever LIQUID is burned, its price is automatically boosted. You can immediately see the price rise in KittenSwap UI, and you can trade it.
AutoBoost is not a gimmick. It has a solid foundation with formulas, which shows we can shift the bonding curve for better pricing in an AMM.
1. What Happens When You Burn Tokens
It begins with the burning of tokens.
…
This is part 3 of the KittenSwap series, in which we gradually present our design for the next-generation swap.
1. You Don’t Need LPs for AMMs
Here we show it’s possible to have good liquidity without LP.
And then problems like IL (impermanent loss) and “how to provide LP incentives” are gone forever.
Liquidity is essential for a new token, hence there are tokens with LGEs (Liquidity Generation Events), where LPs lock significant amount of ETH to provide permanent liquidity.
However consider this:
- In the beginning, let the contract claim it has 1000 ETH + 10000 token, even though there is only 0 ETH + 10000 token…
This is part 2 of the KittenSwap series, in which we gradually present our design for the next-generation swap.
1. Limit Order is All You Need
Capital efficiency has been the talk of the town, and famous projects are trying to combine Swaps + Options + Loans into a capital efficient single contract.
Here I will show how to achieve Swaps + Options + Loans with simple Limit Orders.
Moreover, my solution is market-driven, and eliminates the need for some magic numbers (such as the various liquidation thresholds for pairs in a lending market).
Join our Telegram and Discord ( on https://www.kitten.finance/ …
This is part 1 of the KittenSwap series, in which we gradually present our design for the next-generation swap.
1. On AMMs and OrderBooks
The common swap designs are AMMs and OrderBooks of limit orders.
AMMs (such as Uniswap):
- Good at price discovery and easy to use.
- However LPs suffer IL and traders are often frontrun by bots.
OrderBooks:
- Do not have IL and frontrun problems.
- However liquidity can be scarce especially for new tokens.
Therefore many projects are looking into hybrid AMM + OrderBook designs.
In KittenSwap, we will go deeper than simply offering two separate choices.
KittenSwap can bring LPs and traders the…
When you deposit ETH into AlphaDex v2.0 vaults, you will receive vault shares, which are tradable ERC20 tokens.
In this way, BULL and BEAR vault shares become synthesized leveraged BULL and BEAR tokens for the underlying market, and using AlphaDex can be as simple as buying and selling such tokens on UniSwap.
AlphaDex v2.0 testnet version is at https://www.alphadex.org/v20 .
There are now three ways to use AlphaDex:
- Manually add BULL or BEAR stakes for a round when you see a trading opportunity.
- Deposit ETH to BULL or BEAR vaults. Let vaults auto-stake and auto-payoff for you every round.
- Directly…
In AlphaDex v2.0, the contract can auto-stake for you in every round and:
- Saves huge amount of gas for traders.
- No need to click buttons for every round.
- Ensure there will always be stakes for every round.
And if you are in auto-staking vaults, the experience is more like leveraged trading, instead of binary options. Because you are only risking a small amount of your assets in every round. More on that later.
There will be four basic vaults for four basic strategies:
- BULL. Stake 3% of assets being bullish every round.
- BEAR. Stake 3% of assets being bearish every…
In AlphaDex v1.0, we introduce three improvements:
- The side with less stakes can enjoy slightly better odds.
- Earlier staking are also rewarded with slightly better odds.
- You can now directly stake and receive ETH (instead of WETH).
The new version is now at https://www.alphadex.org/ .
The changes can be best demonstrated with an example.
- Assume epoch X started at 00:00:00 and the round length is 8 hrs.
- Adam staked 0.5 ETH on the bearish side at 00:01:00 .
- Betty staked 5 ETH on the bullish side at 00:06:00 .
- Conrad staked 0.5 ETH on the bearish side at 00:07:00 .
- …
The special design of AlphaDex ( https://www.alphadex.org/ ) is the comparison of [TWAP of round x+2] vs [TWAP of round x+1].
In this article, we will take a closer look at it, and show it is like predicting price movements in the next 2 rounds, and TWAP helps to prevent flash loan attacks.
Let the current time be 9:30 (end of round X), and the round period be 10 minutes.
Case 1: Bullish. Price increases in the next 2 rounds (9:30 to 9:50).
Case 2: Bullish. Price still increases in the next 2 rounds (9:30 to 9:50).
