Unified Liquidity Pool
Our innovation to Automated Market Makers generates higher returns for LPs and improves trading efficiency.
Datnoid supports every token (past and present) in our Unified Liquidity Pool
Splitting/Fragmenting liquidity into a million contracts is inefficient and costs users in time and swap fees.
Benefits of Unified Liquidity
reduced number of swaps compared to traditional DEXes
higher APR for Liquidity Providers
creates arbitrage opportunities for external assets (AVAX/USDC/USDT/wETH/BTC.b/ etc)
Simplicity
don't need to guess which price bin will yield the most rewards
can stake a single asset instead of requiring the 50/50 ratio of assets in traditional DEXes
can passively earn, instead of actively chasing APR
Guaranteed Arbitrage Opportunities
More context for the image;
The far left and far right represent the price of assets on each respective DEX
Prices of assets are determined by the ratio of assets in a pool
compared to a static price bond curve model
The less of an asset, the higher the price of that asset
If more of an asset is added, the price of that asset decreases
Since $USDC is the primary asset we price assets against, when more USDC is added to the pool, the price doesn't "go down" from $1, instead the price of the external assets goes up
In the above example, USDT temporarily is worth more than $1.
"Selling" USDT or "Buying" with USDT are effectively the same thing; They both
Normally, $100 of USDT gets you $100 of USDC. However, with the now higher spending power of USDT, you now get more USDC.
The arbitrager will continue to sell USDT for assets until enough USDT is removed from the pool to bring the price back to $1. They would never continue past this point because they'd be losing money instead of making money.
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