[ANN] PixelSwap - The First Modular and Upgradeable DEX on TON

[irfanpak10]

PixelSwap101: Understanding Capital Efficiency in the TON DEX Ecosystem​

In the world of DeFi, liquidity is often discussed in terms of Total Value Locked (TVL), but an equally critical factor is Capital Efficiency. This concept measures how effectively capital is used to generate returns or output, playing a crucial role in maximizing productivity within decentralized exchanges (DEXs). If liquidity is the lifeblood of DeFi, capital efficiency is the heartbeat, dictating how productively assets are deployed. PixelSwap on the TON network exemplifies this with its high-efficiency approach, setting new standards for capital utilization in the DEX landscape.

What is Capital Efficiency?

Capital efficiency refers to the ratio of trading volume to the liquidity locked within a protocol. Specifically, we can assess this efficiency with the Liquidity Turnover Ratio (LTR), calculated as:

LTR = Trading Volume (24hr) / TVL​

A higher LTR indicates a DEX that achieves more trading volume with less liquidity, reflecting greater efficiency. In essence, a DEX with good capital efficiency operates like a well-oiled machine, maximizing output with minimal resource use. In contrast, inefficient DEXs squander liquidity, much like an engine wasting fuel for subpar performance. As decentralized exchanges evolve, capital efficiency is emerging as a primary metric of success, redefining competitive dynamics.

PixelSwap: Leading the Way in Capital Efficiency on TON

As part of the PixelSwap platform, capital efficiency is prioritized to enhance the trading experience on TON. By optimizing liquidity pools, smart routing, and automated market making (AMM) strategies, PixelSwap allows users to trade seamlessly with lower slippage and better returns. This focus on capital efficiency ensures that PixelSwap can achieve high trading volumes without requiring vast amounts of locked liquidity, setting it apart as a leader in the TON DEX ecosystem.

PixelSwap’s efficient design maximizes asset productivity and provides a robust platform for both new and experienced DeFi users. As users engage with Swap and Pool features, they experience the benefits of optimized capital usage, making PixelSwap the go-to platform for trading on TON.

Read More

• PixelSwap101: What is Capital Efficiency?

Official Links
• LayerPixel: Homepage | Twitter | Community | Medium
• PixelSwap: Homepage | Twitter | SWAP | Pool
• PixelDAO: Twitter | Forum | Chat Group

 

[irfanpak10]

PixelSwap101: How Do AMM & Liquidity Pools Work?​

Automated market makers (AMMs) have transformed on-chain trading by removing the need for traditional order books. On conventional exchanges, traders require a counterparty to execute trades. AMMs, however, enable seamless trading on token pairs, even those with typically low liquidity on order book exchanges. The core of this system is the liquidity pool—a collection of funds provided by liquidity providers and secured in a smart contract, all of which is accessible on PixelSwap.

Understanding AMMs and Liquidity Pools

Consider an order book exchange as peer-to-peer, whereas trading on an AMM is peer-to-contract. When you trade on an AMM, you're not interacting with an individual but with the liquidity in the pool. As long as the pool has enough liquidity, your trade can proceed without requiring a specific seller. For instance, buying $DOGS on a TON DEX doesn’t involve a direct transaction with a seller. Instead, an algorithm within the liquidity pool handles the trade, setting prices and managing execution based on available liquidity.

In this setup, liquidity providers supply the assets you trade against, though they aren’t direct counterparts like in traditional order book exchanges. Instead, you’re interacting with a smart contract that governs the pool, offering a unique trading experience on PixelSwap.

Benefits of AMM & Liquidity Pools on PixelSwap

On PixelSwap, AMMs and liquidity pools enable fast, efficient trading while reducing reliance on counterparties. This structure promotes smoother transactions, lowers slippage, and provides increased access to trading opportunities across various tokens in the TON DEX ecosystem.

As more users join PixelSwap and contribute to liquidity pools, the platform benefits from enhanced depth and trading efficiency, supporting a vibrant and liquid market. Whether you’re a seasoned DeFi trader or new to the space, AMMs on PixelSwap offer a revolutionary way to engage with the TON network.

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Read More

PixelSwap101: How Do AMM & Liquidity Pools Work?
Official Links
• LayerPixel: Homepage | Twitter | Community | Medium
• PixelSwap: Homepage | Twitter | SWAP | Pool
• PixelDAO: Twitter | Forum | Chat Group