DRXdefi Official

Do you want to trade with almost 0% fees on XRPL? XRPL's AMM introduces a novel feature called continuous auction mechanism that allows traders to swap with 90% discounted fees and also helps reduce the risk of impermanent loss for Liquidity Providers. This mechanism allows Liquidity Providers to bid for a 24-hour slot that grants them the ability to trade against the AMM at a 90% discount. This is particularly advantageous for big traders and arbitrageurs who can immediately execute trades to profit from price discrepancies without waiting for the profit to exceed the trading fee. You can try it here: dex.anodos.finance/liquidity The AMM continuously auctions off trading advantages to arbitrageurs, charging them and giving these earnings to its liquidity providers. This allows liquidity providers to take a large share of the profits that would normally be taken by arbitrageurs. In simple words, this mechanism ensures that your LP tokens are now worth more because others have been burned, thus reducing your potential impermanent loss. The bid must be paid in LP Tokens, which are returned to the AMM. No more than one account can hold the auction slot at a time, but the bidder can name up to 4 more accounts to also receive the discount. Since the auction is continuous, bids can be placed at any time, and the slots for discounted fees can change hands frequently. LPs must outbid the current holder to gain the discount benefits. When a new bid is successful, the current slot holder receives a pro-rata refund based on the remaining time and the price they initially paid for the slot. The rest of the bid amount is burned, effectively increasing the remaining LPs' share in the pool. The mechanism is designed to be more efficient for both arbitrageurs and LPs, with a dynamic pricing algorithm that adjusts the bid price based on the slot's age and a revenue-sharing model that benefits the liquidity pool and all LPs.