Users of FairSwap can benefit from the wonderful user experience that AMMs, or Automated Market Makers, bring to the table. In addition, FairSwap will protect the users from front-running by implementing an additional layer of defense.
Trading fees on FairSwap are automatically adjusted based on estimated annualized volatility and the strike price of LBT. This Dynamic Fee Pricing system will compensate for the excess impermanent loss that a Liquidity Provider might experience due to the volatile nature of LBTs.
FairSwap incorporates the idea of frequent batch auctions when executing trades.
Trades placed on FairSwap are not processed serially as they would on a normal exchange.
Serial processing would open up opportunities for arbitrageurs to “front-run” orders at the disadvantage of others.
Instead, FairSwap batches orders included in two neighboring blocks, and clears these orders simultaneously.
This ensures that the orders included in these two blocks get the same, or “fair”, price.
Trade ETH, LIEN, iDOL, LBT, and SBT
A protocol for creating Options and Stablecoins out of ETH