What is Ambient Finance? Ambient Finance (formerly CrocSwap) is a decentralized exchange (DEX) protocol built and developed on Ethereum. Ambient Finance is a combination of centralized liquidity (like Uni V3) and surrounding liquidity from 0 to infinity (like Uni V2). So what makes Ambient Finance stand out? How does the mechanism work? Join the Weakhand team to find out below in this article!
To understand more about Ambient Finance, you can read the articles below:
- What is Uniswap (UNI)? Uniswap Cryptocurrency Overview
- Uniswap Ecosystem: When Providing Liquidity Becomes a Protocol Strategy
- What is Uniswap V3? Is Centralized Liquidity Changing the Crypto Market
What is Ambient Finance?
Ambient Finance is a decentralized exchange protocol built and developed on Ethereum. Ambient Finance’s liquidity is provided through the AMM mechanism, which is an aggregated liquidity pool with capital provided by liquidity providers. grant.
Liquidity on Ambient Finance is a combination of centralized liquidity (Uni V3) and zero-to-infinity liquidity (Uni V2).
Mechanism of action
Features available on Ambient Finance:
Swap
This is the core feature of Ambient Finance, allowing users to exchange assets, typically the ETH / USDC pair. Because there is only one pair of assets to swap, it saves on gas fees.
Trade is a buying and selling feature on Ambient Finance, allowing buying and selling assets on the supported platform, including 2 main assets: ETH and USDC.
Pool
This is also an important feature of Ambient Finance, allowing users to provide liquidity for the ETH/USDC asset pair with fees ranging from 5%, 10%, 25%, 50%.
Types of liquidity available on Ambient Finance
Centralized liquidity
Centralized liquidity allows users to provide liquidity within arbitrary predetermined price ranges on a single AMM curve.
- Advantages: TLiquidity focuses mainly on capital efficiency. LPs must only pledge collateral to support a limited range of liquidity.
- Disadvantages: TCentralized liquidity is a position that no longer accumulates fees if the price curve moves outside the range of the order. Therefore, centralized LPs must adjust their price range wisely or rebalance their order to move it back into the range.
Knockout liquidity
Knockout liquidity works identically to range-based centralized liquidity, except that liquidity is completely and permanently removed from the AMM curve at any point where the curve’s price moves over the edge of the range. Knockout liquidity can be set to be eliminated when the curve price falls below the bottom or rises above the top.
Development Roadmap
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Core Team
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Investors
The project successfully raised Seed Round capital in the amount of $6.5M at a valuation of $80M led by Blocktower and many other funds.
Tokenomics
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Exchanges
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Project Information Channel
- Website: https://ambient.finance/
- Twitter: https://twitter.com/ambient_finance
- Discord:
Summary
Above is the information about Ambient Finance that the Weakhand team learned. Ambient Finance (formerly CrocSwap) is a decentralized exchange (DEX) protocol that enables two-sided AMMs to combine centralized and ambient constant product liquidity across any chain asset pair any arbitrary block.