🔁Asset Exchange
Here we will delve deeper into the concept of asset exchange (swap) and it's significance.
Introduction:
Panorama Swap is a decentralized platform built on the Aleph Zero blockchain, offering users a seamless and permissionless way to swap digital assets. Leveraging the high throughput and sub-second block finality of Aleph Zero.
Seamless Token Swapping with Panorama Swap:
Panorama Swap enables users to effortlessly swap and exchange PSP22 tokens, fostering a vibrant ecosystem for decentralized trading. With our on-chain logic, all swap transactions are handled transparently and reliably, providing users with peace of mind when engaging in token swaps. Every detail of the transaction is dynamically presented to users, ensuring transparency and empowering them to make informed decisions.
The "Approve" Function:
To initiate token swaps on Panorama Swap, users must first invoke the "approve" function. This function grants permission to the trading pair smart contract to utilize a specific amount of tokens on the user's behalf. After each successful swap, the allowance of the trading pair smart contract is reduced, necessitating users to re-approve the contract for further swapping activities. This mechanism enhances security and ensures that users have control over their tokens during the swapping process.
Understanding Price Impact:
Price impact refers to the percentage difference between the token's price before and after a successful swap. This value signifies the effect of the swap on the price of the traded token. By considering the price impact, users can gauge the potential impact on the market and make more informed decisions when executing swaps on Panorama Swap.
Managing Slippage:
Slippage is a common occurrence in trading and represents the difference between the expected price of an order and the actual execution price. Panorama Swap provides users with the ability to set their slippage tolerance percentage, allowing them to specify the maximum amount of tokens they are willing to lose due to slippage. This feature empowers users with greater control over their trades and ensures that they can maintain their desired level of risk during the swapping process.
Fees on Panorama Swap:
When conducting swaps on Panorama Swap, users are subject to various fees to support the ecosystem's sustainability and incentivize liquidity providers. Firstly, a liquidity provider (LP) fee ranging from 0.1% to 3% is distributed to liquidity providers as an incentive for their participation. This fee structure encourages users to contribute to the platform's liquidity, enhancing its overall efficiency.
Additionally, a nominal amount of AZERO tokens is required to cover Aleph Zero network fees for each trade. These transaction costs are generally low, ensuring that users can engage in swaps without significant financial burden.
Furthermore, Panorama Swap implements a trader's fee, which amounts to 0.2% of the total swapped asset value. This fee is allocated to the platform's treasury vault and the LP incentive program, reinforcing the ecosystem's sustainability and providing ongoing support to liquidity providers.
It's important to note that the currently proposed fee structure is subject to change as we continually evaluate and optimize the platform's economic model to ensure its long-term viability and benefits for all participants.
Conclusion:
Panorama Swap offers users a decentralized and efficient platform for seamless token swapping on the Aleph Zero blockchain. By incorporating the approve function, considering price impact and slippage, and implementing a fair and transparent fee structure, Panorama Swap empowers users to engage in secure and informed trading activities. As we continue to refine our platform, we remain committed to providing an exceptional user experience while fostering the growth and sustainability of our vibrant ecosystem.
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