III.4 AZC Web3
Last updated
Last updated
AZC Web3 aims to build a derivative ecosystem that caters to everyone, from beginners to seasoned experts in the cryptocurrency field. Notably, AZC Web3 has integrated with up to 5 popular blockchain chains such as Ethereum, BNB Smart Chain, Arbitrum One, Polygon, and Optimism. And that's just the beginning as we are aiming to expand further with many more multichain integrations in the future.
AZC Swap is an Automated Market Maker (AMM) protocol and a decentralized exchange (DEX) built on multiple chains, allowing users to swap various tokens. AZC Swap is currently the most commonly used exchange due to its speed and convenience. The AMM mechanism facilitates trading on AZC Swap without needing an order book. Instead, a smart contract acts as the intermediary; sellers deposit assets into a place called a liquidity pool, and buyers swap their assets with those in the pool through the smart contract.
Each liquidity pool on AZC Swap is a trading venue for a pair of tokens. When the pool contract is created, the balance of each token is zero. To start providing trades, a Liquidity Provider (LP) needs to deposit funds for each token. The first LP will set the initial price for the pool. LPs are encouraged to provide equal value for the two tokens. Conversely, if the first LP provides two tokens with different value ratios compared to the market price, an arbitrage opportunity may arise, potentially being exploited by others. When LPs provide liquidity to the pool, they receive Liquidity Tokens equivalent to the amount of liquidity they provided. These tokens represent the LP’s contribution to the pool.
For each trade, a 0.3% fee is proportionally distributed to all LPs in the pool at the time of the transaction. To withdraw the deposited liquidity and the accrued fees, LPs need to burn their liquidity tokens. LPs can also sell, transfer, or use them as they wish.
AZC Perp is a multi-chain futures trading platform that offers users a simple and convenient trading experience. Unlike other derivative DEX platforms, AZC Perp allows users to trade tokens with small market caps and high volatility, suitable for those who prefer high-risk investments. Additionally, AZC Perp optimizes the user trading experience by minimizing slippage and creating a liquidity provision environment with the best returns using a dynamic ACM mechanism.
Spot: A platform for those who want to buy and sell cryptocurrencies traditionally, based on supply and demand principles.
Perpetual: A place where people can engage in trading through futures contracts.
Option: A market that allows you to trade using options contracts.
