What is SmarDex? The DeFi Disruptor Poised to Take Over the DEX Market
SmarDex is a new DEX that uses fictive reserves and a smart calculation system to automatically determine which token is rising faster.
What are "fictive reserves"? Read the whitepaper.
Fictive reserves are a percentage of the reserves in the pool. Although the ratio remains the same, and hence the swap price appears the same, by using essentially a subset of the whole pool, the final swap price will be different. From a first reading, this seems to give slightly larger slippages, but the benefit is to lower over time any accumulated impermanent losses. The larger slippage in a trade means that the reverse trade, if done soon after, will give a much better swap price.
There is a simulator for those who want to see the mathematics in action. Using a sub-pool may increase risks if that pool becomes small compared to the size of trades.
The advertising video is, however, dreadful...
Anyone championing "backed by science" is skating on thin ice. And check out the team members.
The smart contracts audit by Paladin remains "in progress" as of writing. So, looks promising, but keep your due diligence on alert.
Interesting, although managing pools using Balancer protocols remains more flexible, especially for multi-token pools. Uniswap remains a naive algorithm that will, hopefully, be consigned to the horse-and-cart age of crypto history.
IL comes from the simple xy=k leading to the sum of values falling.
As coins have a market price on other platforms, I dont see that the dex can stray too far from those - but all swaps are currently only available with its native token ;-) That's how the magic is possible.
It does have the form of many "yield farm ponzis"; I'd have to do some more simulations.