The mechanics of operation
Fundamentals of DEX Tegro.Finance device and operation
Last updated
Fundamentals of DEX Tegro.Finance device and operation
Last updated
Tegro.Finance is an automated liquidity protocol that uses a constant product formula to provide liquidity and exchange tokens. It is a decentralized, non-custodial and secure way to exchange tokens on the DEX platform.
The platform's functionality is based on the TON (The Open Network) blockchain, allowing it to take advantage of the high throughput, asynchronous execution and fast completion that this blockchain offers.
It is important to note that the benefits of the TON blockchain are not limited to fast speed and asynchronous execution. Thanks to its architecture and innovative technologies, TON provides high scalability and security for its users.
This is especially important for DEX, where security and scalability play a key role in ensuring the stability and reliability of the exchange.
Thus, using the TON blockchain as the basis for DEX Tegro.Finance allows the cryptocurrency exchange to provide its users with fast and secure trading, as well as stability and reliability in the long term.
Tegro.Finance uses smart contracts to manage a liquidity pool that consists of reserves of two tokens. These tokens can be added to the pool by any liquidity provider. The liquidity provider then receives special LP tokens in return, which track its share of the total token reserves.
When a user wants to make an exchange, the system automatically calculates a new exchange rate based on the current volume of token reserves. Each pair of tokens has its own liquidity pool managed by its own smart contract. Each exchange leads to a change in the volume of token reserve and, accordingly, a change in the exchange rate.
In addition, since liquidity providers receive LP tokens in exchange for token reserves, they can exchange these tokens for base tokens at any time, returning their share of the reserves.
Overall, the use of a liquidity pool system is a key element for creating an automated liquidity protocol, as it allows for reliable and sustainable trading on the DEX platform.
