Liquidity Pools
Smart Rebalance Market Maker
Last updated
Smart Rebalance Market Maker
Last updated
HbarSuite Liquidity Pools are a collection of tokens locked into the Continuous Multi-Sig Smart-Nodes Engine. Anybody may be able to swap assets and also deposit tokens providing Liquidity to earn HSUITE rewards. The Automated Market Maker (AMM) Algorithm utilized to initialize the Liquidity Pools is the novel Smart Rebalance Market Maker (SRMM), which is a Hybridization of a constant product market maker that allows the User to experience Zero-Slippage. With the SRMM, the User is always able to see what they are exactly swapping before executing the transaction, and since the Smart-Nodes use Hedera Offline Atomic Transactions, the User will NEVER pay for gas fees if a transaction fails for any reason. Example The SRMM initiates a pool with a 50/50 ratio. However in order to utilize atomic transaction on Hedera and achieve a Zero-Slippage Effect, there could be instances where the ratio slightly changes and goes to ex. 49/51. As soon as the ratio changes weight, the algorithm will adapt the price in order to restore the balance in a perpetual manner. If the SRMM Oracle notices that a transaction would unbalance the pool > n%, the transaction will be rejected in order to preserve stability. Think of an old-school scale:
