LAYERK DEX
LAYERK DEX: Explore the capabilities of a decentralized exchange (DEX). LAYERK DEX empowers you to securely trade cryptocurrencies and digital assets without intermediaries. Coming soon!
LAYERK DEX
LAYERK DEX is the ecosystem's decentralized exchange (DEX). Unlike centralized exchanges that depend on intermediaries, L-DEX utilizes smart contracts to facilitate direct trades between users, ensuring anonymity and independence from central constraints. Key features of L-DEX include:
User-contributed liquidity.
Rewards and trading fee shares for liquidity providers.
A requirement of sufficient liquidity depth for token pair trading.
Swap: How Does It Work?
LAYERK DEX allows users to swap tokens efficiently.
Token swapping is a core function of DeFi DEXs, where users send their tokens into the protocol and receive as close to an equivalent value of another token as possible, considering transaction fees, slippage, and price impact.
In DeFi, smart contracts manage each step of a swap transaction, without involving human or centralized intermediaries. This provides users with several advantages over traditional or centralized currency exchanges, including:
Fast transaction speeds
Permissionless trading
Flexibility and access to a wide variety of tokens
Markets that are always open.
Most importantly, swapping between tokens allows users to take advantage of unique opportunities within DeFi. For example:
A user looking to acquire a protocol utility token, such as LAYERK, can utilize the LAYERK DEX to swap it with an existing token.
A user interested in supporting a specific crypto project first on the BNB Chain and later on the LAYERK Chain can utilize the LAYERK DEX to purchase the token of a listed project. They have the flexibility to swap tokens swiftly and independently, without requiring intermediary approval.
A user seeking to consolidate crypto tokens into stablecoins for portfolio stability can use the LAYERK DEX to trade their project tokens for USDT or other listed stablecoins at any time, without the need for permission from a centralized entity.
Trading Fees
⚙️ More information will be shared soon.
Slippage
When a user initiates a swap on the LAYERK DEX, they set a slippage tolerance amount, which determines the acceptable price difference between the time of transaction submission and its confirmation on the blockchain. Slippage refers to this difference in prices.
The slippage tolerance can range from 0.20% to 2.00%, with a default value of 0.50%. If the price discrepancy exceeds the chosen tolerance level during execution, the trade will not go through.
If the token being traded includes a reflect fee, the slippage tolerance must meet or exceed the percentage of the reflect fee for the transaction to successfully complete.
Price Impact
Slippage arises not only from fluctuations in prices due to other users' trades but also from the trade itself, which is referred to as price impact. This impact is expressed as a percentage at the bottom of the swap module. Price impact is determined by the constant product formula. If the slippage tolerance set by the user is less than the price impact of the trade, the trade will not be successful.
Tx Deadline
Swaps on the platform default to a transaction deadline of 20 minutes before timing out and failing. This ensures that incomplete transactions do not linger indefinitely in a user’s wallet. Users have the option to adjust this time limit in the settings of the swap page.
Last updated
