- Smardex uses sophisticated fine-tuned algorithms to transform impermanent loss into gains.
- This protocol allows all liquid owners to earn smart returns.
Decentralized Exchange is not a new thing. Everyone knows about it and how it is revolutionizing the current financial system. There are many apps and websites built on base to build a better decentralized system. Bitcoin, Blockchains, and all the other DeFi apps are part of this ecosystem.
But there was an issue in decentralized finance that no software addressed till now. This problem was resulting in losses to the investors. This problem was nothing but impermanent losses. But now we have got a solution to this problem. The solution is SDEX. In this article, we will discuss in detail how this platform is able to solve the issue of impermanent loss by knowing about it in detail and also understanding its working.
About Smardex
Basically, it is an open-source smart contract, which allows users to directly exchange decentralized tokens without centralized authority. SDEX is specially built to solve the problem of “Impermanent Loss” and it is able to achieve this milestone with the help of sophisticated fine-tuned algorithms. We will understand how this algorithm works in detail. But let’s first explore what other cool features this protocol offers.
Special Features of Smardex
Reduced Swap Fees:
Swap fees is a fee charged by the chain to conduct a successful transaction on the blockchain. SDEX offers fewer Swap Fees to benefit the investors and promote more swap transactions.
Enhanced Liquidity Provider Profits
Improved Efficiency for All
How Does it Work
Smardex promises to provide groundbreaking technology that allows liquidity providers to earn smart returns. It also promises to manage the issue of impermanent loss. It is able to do this with the help of fictive reserves.
Smardex manages liquidity in a very unique way. Although it uses traditional finance it manipulates the k constant rule by changing it. This seems very hard to understand and non-technical audiences can feel difficulty in understanding it. So we have simplified the working of Smartdex into 5 simple steps.
Step by Step working of Smartdex
- The fine-tuned algorithm that SDEX uses automatically calculates which token will rise in price.
- The algorithm sells that token less after detecting it.
- This allows the liquidity provider to sell the token at a higher price since its price will not be reduced too much because fewer tokens were sold.
- Investors experience impermanent gains due to this.
- SDEX even rewards liquidity providers with Fees & Rewards.
This is how SDEX overcomes the problem of impermanent losses by reducing the imbalance caused in the liquidity pool.
Smardex Token
Smardex also provides users an opportunity to earn smart passive income. This income can be generated by staking the smarter token. Users get farming rewards and protocol for staking their token which can act as their passive income.
Here are some Stats about SDEX Token
Smardex token enjoys a Market cap of $35,076,757 and ranks #447 on the coin market cap in terms of Market cap. The fully diluted market cap of SDEX is $55,017,320. It too has a maximum supply of 10,000,000,000 out of which 6,372,812,739 Tokens are already in circulation. Which is 64% of the total. Currently, this token is trading at a price of $0.005505.
