🧪Octo AMM (v1)

Our Automated Market Maker algorithm is powered by smart contracts for secure, efficient trading.

Octo shows the formula.

Octo v1 is built on the foundational model of Uniswap V2, known as the constant product formula, or x * y = k. This formula ensures that the product of two assets in a liquidity pool remains constant, meaning that when one asset is traded, the supply of the other adjusts accordingly to maintain this balance. This elegant and effective mechanism allows users to trade assets directly from the liquidity pool without needing a traditional order book, making it more efficient and decentralized. Octo v1 AMM is battle-tested and fully audited, providing users a secure and reliable trading environment.

Octo AMM not only preserves the core principles of the x * y = k formula but also enhances its design to optimize liquidity and reduce slippage. Liquidity providers in this system earn fees whenever a trade occurs within the pool, incentivizing them to contribute liquidity. However, LPs should be aware of "impermanent loss," a risk that arises when the value of deposited assets changes relative to each other. For detailed information on slippage, price impact, and impermanent loss, please check our comprehensive guides.