o2dex

This article intends to explain how O2DEX reduces the investment risk of liquidity providers in DEX through the design of the O2DEX AMM mechanism and economic model, and how it benefits every user in the ecosystem through the deflation mechanism, mainly involving the market maker models, incentives, and deflation mechanisms. Being an important role in exchanges, market makers provide sufficient liquidity for transactions, allowing people to quickly buy or sell assets in the market. AMM replaces the manual quotations of traditional market makers with algorithms. The market makers in DEX are called liquidity providers. They add a large number of tokens to the token pool which accumulates the liquidity of market makers, enabling other users to have the same trading experience as on a traditional exchange. In the traditional AMM, taking the most classic constant product model (CPMM) as an example, Uniswap is a typical instance. CPMM is based on the function X*Y=K, which determines the pric...