A permissionless and decentralised way to swap tokens
Arkadiko Swap is our implementation of a Decentralized Exchange on top of the Stacks blockchain.
Drawing inspiration from industry titans such as Uniswap and Curve, we have added functionality that enables to swapping of SIP10 - tokens.
Arkadiko Swap supports two types of liquidity pools.
One for uncorrelated asset pairs such as STX and BTC. A user that wishes to supply liquidity to such a pool needs to provide STX tokens and BTC tokens of equal value to the pool. He then receives LP (Liquidity Provider) tokens that represent his share of the pool. Trading fees will automatically accrue in the pool and are distributed pro rata the share of each individual that holds LP tokens.
The second type of liquidity pool is one for pegged assets. Such pools hold assets that are assumed to be of equal value. The most common example would be different types of stablecoin representation being bundled in a liquidity pool so that users can easily swap between the equally-priced tokens. We plan to have a pegged swap pool with USDA and USDC as such a pool increases the stability of the USDA peg as well as opens up opportunities for arbitrage. In pegged swap pools, a user can supply liquidity in a single asset as the price correlation between the assets is implied and the ratio of the assets in the pool has a much more subtle impact on the individual asset pricing. Fees for pegged swaps are typically a lot cheaper than for uncorrelated assets.
Arkadiko Swap creates opportunities for passive income by providing liquidity to pools and collecting trading fees. On top of regular trading fees, the DIKO Governance token is given as a liquidity mining reward for liquidity providers, greatly increasing the yield and profitability of the capital supplied.
An overview of the liquidity pools we are planning to add and incentivize: