Minter 2: On-Chain Automated Market Maker with Order Book

Minter App

Automated Market Maker: Pros and Cons

BTC/USDT order “book”
Change in the price of token A in an AMM pool depending on the quantity bought
  1. Traders can’t buy or sell tokens at the pre-specified price, the only option is to swap “at the market”
  2. AMM pools aren’t suited for exchanging stablecoins, for example, USDT for USDC. The floating exchange rate means a high probability of getting an unpleasant rate in the case of large amounts
  3. Liquidity is limited at low spreads

On-Chain AMM with Order Book

  1. Traders can buy or sell at a fixed price without giving up the liquidity benefits of AMM pools
  2. AMMOB pools are suitable for exchanging stablecoins, for example, USDT for USDC. One will have an opportunity to create an order to buy $1,000,000 worth of USDT for USDC at 1% below the market and later sell it at 1% above
  3. An AMMOB is more liquid than a traditional AMM pool: in some areas, the price curve becomes a straight line
  • The price of BTC stands at $50,000
  • The buyer places an order to buy BTC at $49,000
  • The seller wants to sell 10 BTC
  • Some of this amount is sold using the regular AMM algorithm
  • As soon as the in-pool price coincides with the one fixed in the order, there’s a sale at the pre-set price
  • The amount that remains after the order has been filled is sold using the regular AMM algorithm once again
Change in the price observed in an AMMOB pool
  • $0.08 for placing an order
  • $0.01 for canceling
  • $0.03 for an executed market order
  • 0.2% of the volume filled goes into the liquidity pool
  • The minimum order size is $10

Minter Hub

Opportunities Opened up by Minter 2 + Minter Hub

Minter App

Math of Deals

Supporting development and adoption of Minter, a digital assets marketplace powered by a fast blockchain. Other social media: minter.org/#follow

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Bitcoin Price Plunges: Is There a Real Reason to Panic In 2018?

Indodax × BitUniverse 2020 Global Grid Trading Contest — 1.05 BTC to Be Won!

BetterNews #5: September to remember

Pulsar: Bringing the first Rebasing Token with real use utility to the Binance Smart Chain

Interview with Stanislav Taktaev — Founder and CEO of DARFchain

What is Ripple? Here’s a ridiculously easy beginner’s guide on Ripple(XRP)

How To Avoid DeFi Problems

Covesting welcomes Dmitry Lavrov, one of the top traders at TradingView

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Minter

Minter

Supporting development and adoption of Minter, a digital assets marketplace powered by a fast blockchain. Other social media: minter.org/#follow

More from Medium

$JUIX launch Postponed

Smart LP Overview + FAQ

1ST DEXTools Token Burn from aggregator Fees

Introducing BakerGuild: Super epic yield-farming on Fantom.