TaalSwap Primer: Basics of TaalSwap AMM and IDO
What is TaalSwap?
TaalSwap is a multi-purpose AMM (Automated Market Maker) protocol for token swaps/yield farming and IDO. TaalSwap, currently Ethereum-based but pursuing a multi-chain AMM protocol, is to be operated through BSC (Binance Smart Chain), Klaytn and Heco (Huobi ECO Chain), and serves as a permissionless DEX geared into actualizing multi-chain token pools and auctions.
- TaalSwap as an AMM protocol: TaalSwap, as a full-fledged DEX, provides with users an easy-to-tap-into AMM environment for token swapping and yield farming taken up by TaalSwap-connected token pairs. Trading and liquidity-providing services are available from July 7, and staking/yield farming will also be on the track in August.
- TaalSwap as an IDO platform: TaalSwap IDO has also been fully implemented, and cryptocurrency projects can now easily raise funds by setting up a swap pool of their choice (i.e., fixed swap auction pool or batch auction pool) on the TaalSwap IDO platform. End-users will be able to join the projects as whitelisting participants in our secure and rule-abiding service environment.
What centralized exchanges can offer
- Margin only. All you can do is to fall back on small profit taking.
- Your asset value could go up or down, and far worse than this is that it happens in unexpected ways.
- Zero interest. There’s no way to grow your assets just by putting them into centralized exchanges.
Advantages of AMM pools
- The total volume of holding assets doesn’t change (You only pays a small amount of fees for your transactions).
- You can earn profits with high APR/APY.
- You can always extract your assets for arbitrage trading.
- In a nutshell, AMM pools serve as a decentralized bank offering high interest
Overview of TaalSwap AMM
Workings of Auto/Manual TAL
- TaalSwap staking pools serve to grow users’ assets in terms of automatic and manual compounding.
- TaalSwap staking starts with two ready-made staking pools, Auto TAL and Manual TAL.
- In Auto TAL, the profit earned by staking TAL is periodically added to the staked TAL, thus enabling users to get compound interest.
- In Manual TAL, users get APR interest, but can make compounding effects by manually adding their profit to the staked TAL.
- This picture shows that the two staking pools of TaalSwap AMM, each of which contains the information on the earned profit, the annual interests, and the total amount of staked TAL.
- This example shows that (1) an investor staked 3,000,000 TAL in Auto TAL, (2) received ~207 TAL as a profit, and (3) the earned profit has been automatically restaked for compounding.
- This example shows that (1) an investor staked ~109,882 TAL in Manual TAL, (2) received ~70.304 TAL as a profit.
- The investor can collect his/her profit in two ways: compounding and harvesting.
- This dialog box shows that the investor decided to restake his/her profit for compound interest.
- The profit of ~70.304 TAL is added to the pool of Manual TAL.
- This dialog box shows that the investor decided to harvest his/her profit.
- The profit of ~70.304 TAL is added to his/her personal wallet.
Workings of Liquidity Providing and Farming (illustrated by ETH-TAL pair)
- Users can provide liquidity in token pairs of their choice (e.g., ETH-TAL, ETH-USDT, etc.), and they get LP (Liquidity-Providing) tokens in return.
- On putting their LP tokens into TaalSwap farms, yield farming of TAL starts.
- The TAL reward for each staked LP token amounts to the multiplying value of TAL generated per block, allocation ratio of LP token and liquidity holding ratio of LP token.
- Before you yield farming on your assets, you need to provide liquidity in the form of token pair of your choice to get LP (Liquidity-Providing) token.
Workings of Liquidity-Providing Project Token (illustrated by an imaginary token AAA)
- Liquidity of project token AAA is provided by staking AAA in the pool (SmartChefFactory), which in turn leads to generating, say, ETH-AAA paired LP tokens in terms of trading a token for AAA. This way of liquidity providing helps to increase project token sale.
- Project tokens can be utilized for yield farming, that is, putting AAA-LP into the farm to get TAL rewards.
Workings of TaalSwap IDO (Initial DEX Offering)
- With TaalSwap IDO, cryptocurrency projects can easily raise funds by setting up a swap pool based on a fixed purchase rate for tokens on the TaalSwap IDO platform. End-users will be able to join the projects as whitelisting participants in our secure and rule-abiding service environment.