DYMMAX liquidity pools and how do they function

Standard quotation mechanism

Quotation in decentralized protocols

АММ in DYMMAX protocol

Chart 1 — payment distribution by states for the Call option
Chart 2 — distribution of payments by states for 3 strategies in one auction.
Chart 3 — distribution of assets by states from the liquidity pool in the auction.

Pools tokenization and risk control

Scheme 1 — depositing USDT tokens into the pool and issuing dmUSDT tokens instead of deposited ones.
  1. Depositing a token from a participant to the liquidity pool;
  2. The emission of protocol tokens is carried out at the current rate to the base token; for example, if the pool premium is 10%, then the participant must deposit 1.1 USDT to trigger the issue of 1 dmUSDT;
  3. Once deposited, USDT tokens become available for use in auctions through AMM;
  4. Transferring USDT tokens to the auction in accordance with the current profit / loss parameters;
  5. USDT tokens are locked in the auction until contracts expire;
  6. After the contract expires, the tokens remaining after payments on USDT options are transferred back to the liquidity pool. This amount consists of the results of expiration at a given rate, as well as commissions paid by the participants.
  7. Free tokens in the pool can be converted back by the token holder.

Circulation of dmX tokens

Role of the DMX Governing Token in the DYMMAX Ecosystem

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Dymmax

Dymmax

The DYMMAX protocol includes a platform for making transactions and working with an auction is in beta.