Hello Geo readers!
Today we're going to talk about the available AMM in the Algorand Ecosystem, Tinyman.
Tinyman is the first decentralized protocol in the Algorand blockchain where you can purchase other assets avaiable on the Algorand Ecosystem. Using mainnet of the Tinyman protocol involves various risks, including, but not limited to, losses while digital assets are being supplied to the Tinyman protocol and losses due to the fluctuation of prices of tokens in a trading pair or liquidity pool.
Tinyman equips its users with the necessary tools and gives full control to them via smart contracts. This means that only you can connect your Algorand wallet, swap your Algorand Standard Assets (ASAs), launch your own Assets pairs on the platform or provide liquidity. To study Tinyman smart contracts, you can go to this link or you can read Tinyman’s announcement about the smart contract audit completion by Runtime Verfication, whose report detailed the process as well as the results, to show that the Tinyman protocol is fully permissionless and trustless.
Tinyman platform allows the trading and liquidity provision for all ASAs. This is a unique opportunity for opening new access routes to the Algorand world and all the Assets on it, which will probably gain more support and drive their adoption within the community. However Tinyman is not connected to any Assest or Pools, as a protocol we are equally distant from any asset, we are just the platform and anything that happens on this protocol is not related to the project. Tinyman also added the “validated asset” indicator to show for the assets that are recognized officially by the Algorand Foundation. We see this to be a crucial step for our users but these verifications are supplied by the Algorand Foundations.
Using Tinyman in Practice
Just like other networks have their AMM like Uniswap (Ethereum), PancakeSwap (Binance Smart Chain), Algorand also has Tinyman, which is responsible for processing most of the exchanges and liquidity available in the Algorand ecosystem and the Algorand Standard Assets (ASA) .
Let's understand a little bit of this decentralized fast exchange platform, checking from its interface to a little bit of what is around this value exchange mechanism.
The swap function is very simple, you select the pair you want from any ASA with available liquidity on ALGO and perform exchanges, either ALGO-ASA or ASA-ASA. In the settings you can select Dark Theme, Slippage tolerance and also you can hide or show unverified ASA's, unlike ethereum and tron networks the assets in algorand go through a verification process by Algorand Inc, not as an endorsement but as a verification information pertaining to the tokens. There is a 0.3% exchange fee, so 0.25% goes to the liquidity provider. The transaction fees of Algorand blockchain are very very low (0.001 ALGO). All these exchanges are processed using the user's wallet, either through Algorand Wallet (mobile) or using the browser-based desktop wallet (My Algo Wallet).
Below I will show examples with our token from the Geography (GEO) project, which by the way is an asset verified by Algorand Inc.
Adding liquidity is also a very simple process, you choose the pair you want to provide liquidity and provide the amount you want, as long as it is in a 50%/50% ratio. Be aware that there is a risk of impermanent loss.
By adding liquidity you'll earn 0.25% of all trades on this pair proportional to your share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity.
GEO/ALGO Liquidity Pool Tinyman
You also have the option to check current information regarding total liquidity, volume in 24 hours, Total Value Locked (TVL), amount of fees generated, which are usually accounted for to understand the APY of each pool, making it easier for investors and liquidity providers check which pool has better yields.
To consult prices, check liquidity, volatility, market capitalization, total supply and current supply or even risks, there are already several options such as Tinychart, AlgoCharts and AlgoChads. See below the available charts for the GEO/ALGO pair.
Apes Discussion Groups
In addition to all the technical apparatus that provides the exchange system, liquidity, graphics and everything else, there are also discussion groups to avoid investing in rug-pulling and projects by malicious people. Below you can check out the Tinyman Apes group, with a nice staff that discusses and suggests good choices throughout the day, or warns about bad choices.
Well, within this entire ecosystem is the Geography project, which aims to spread geographic knowledge to anyone interested in the subject and also now within the crypto universe and in the algorand network, which has advantages such as low transaction cost and high performance.
Check this NFT on AlgoGems 👇🏽💎