DEX.cc AMM Swaps

At DEX.cc, we are built on the foundational technology powering modern decentralized finance (DeFi): the Automated Market Maker (AMM). Unlike traditional exchanges that match buyers and sellers using an order book, AMMs use smart contracts and liquidity pools to facilitate trades automatically and trustlessly. This means anyone can become a liquidity provider (LP) by depositing tokens into a pool and earn fees from the trading activity, democratizing access to market making.

​How Standard AMM Swaps Work​

In a typical AMM system, liquidity providers (LPs) deposit an equal value of two tokens into a pool (e.g., ETH and USDT). This pooled capital creates the liquidity for all trades. The price of assets within the pool is determined by a mathematical formula (most commonly, x*y=k), which automatically adjusts the price based on the ratio of assets in the pool after each trade. When you perform a swap on DEX.cc, you are interacting with this liquidity pool. You pay a 0.2% fee for the transaction, which is then distributed proportionally to all LPs in that pool, rewarding them for their contribution.

​The DEX.cc Advantage: Introducing the ALA2S Model​

While standard AMMs provide a revolutionary way to earn fees, they often leave a significant portion of the deposited capital idle, solely waiting to be traded against. We asked a simple question: Can we make this capital work harder for our users?​​

This led to the development of our proprietary Automated Liquidity Allocation to Staking (ALA2S) model. ALA2S is a fundamental enhancement to the traditional LP experience.

Here’s how it works: Instead of allocating 100% of a liquidity pool's assets solely to facilitate swaps, our ALA2S protocol dynamically allocates a portion of the pool's assets to a secure, yield-generating staking pool. This innovative approach creates a dual-income stream for our liquidity providers:

1.Swap Fees: LPs continue to earn their share of the trading fees from all swaps executed in the AMM, just like on any other DEX.

2.Staking Rewards: The capital allocated to the staking pool earns additional interest from its staking activities.

​The Result: Maximized APR for Liquidity Providers​

By combining yield from swap fees with yield from staking rewards, the ALA2S model significantly boosts the overall Annual Percentage Rate (APR) for our LPs. This means your capital is not just providing liquidity; it's also actively staked and compounding, generating superior returns compared to traditional AMM models. We believe in maximizing value for our users, and ALA2S is our commitment to creating a more efficient and rewarding DeFi ecosystem.