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Automated Market Making

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Last updated 2 months ago

After funding their trading wallet, users can start leveraging radFi’s AMM. Users select a pool to contribute to on the Pools tab (e.g., PUPS/BTC), along with their desired range and asset amounts. The required amounts are based on the current price quoted by the AMM. Once confirmed, users broadcast and sign a PSBT from their trading wallet.

radFi then checks if the request is still valid according to the latest quote. If valid, radFi signs the PSBT. Once signed by both parties and broadcast, the user will immediately see their updated AMM position in the Positions tab.

As trading occurs within the user's designated range, they earn a share of the fees generated. Users can click "Claim" in the Portfolio tab to request their rewards. They’ll then be prompted to sign a PSBT for the rewards. radFi checks if the request is valid based on the rewards earned, and if so, signs the PSBT and broadcasts the transaction.

Note: The asset amounts contributed at a given range are determined by radFi’s quoted price at the time of the request. If the quote becomes invalid due to other user activity, the AMM request is dropped. The user must request a new quote and submit another PSBT.

Users can become LPs by adding liquidity to their preferred pair