π«Automatic Liquidity
Last updated
Last updated
Our Automatic Liquidity system allows you to concentrate liquid perfectly on any trading pair.
You can also specify a spread, meaning traders can specify how much profit they want to make each time a Swap is made against their liquidity.
Why is this superior to a liquidity pool?
In contrast to a liquidity pool which spreads your tokens evenly across every possible price, automatic liquidity is concentrated perfectly at a specific price.
You can then insert automatic liquidity at as many price point as you want and create a completely custom liquidity profile across any trading pair.
This is immensely powerful and now makes us a global leader in DEX design.
How does automatic liquidity work?
Each time somebody matches with your Buy order, a corresponding Sell is instantly opened with the tokens you would have received.
You can specify the difference in price between the Buy and Sell, for example 1%, which results in automatic profit each time an Order matches with your liquidity (Figure 1).
To access the automatic liquidity feature, open the swap form fully by clicking 'Advanced'.
Automatic liquidity orders must be less than Market Price. This is because when a standard order is created, we first match as much as we can and then the remainder is created in a new order. For liquidity flipping, we want the full amount to be flipped, so we don't want to match first. This also prevents an unmatched overlap.
A flip order keeps flipping indefinitely until it is cancelled.
The order can be locked for one of the specified times. This means the order cannot be cancelled until the time is up. This could be useful for project owners to provide a fair launch.
The power of Alephium!
The Stateful UTXO model on Alephium, combined with its Smart Contract language βRalphβ and its APS (Asset Permission System), make this automatic liquidity extremely safe and efficient compared to legacy blockchains.