🔃Decentralized Exchange
Last updated
Last updated
Our DEX is based on Pancakeswap V2 and V3, pioneers in the space who themselves forked from Uniswap, adding additional functionality. The secta team is working on extending this further to bring more experiences to traders, details can be found in the roadmap. At launch time, functionality is restricted to the proven dex functionality.
V2 pools are a simple, proven structure for executing trades on chain. It uses a simple constant product formula (x*y=k). These pools allow fee-on-transfer / tax tokens to be used in trades, unlike in V3 pools. This, combined with the simple and straightforward structure, make V2 pools an ideal instrument to launch and trade a memecoin. Fees are collected and compounded automatically, and all traders participate in the full range (rather than customizing a concentrated liquidity range).
Unlike v2 pools, this allows liquidity providers to create unique, non-fungible positions, giving them individualized control over their investments.
Providers can specify the price ranges where they want their liquidity to be active. This targeted approach can lead to higher efficiency and potentially greater fee earnings.
This feature lets providers concentrate their funds within chosen price ranges, increasing the impact of their capital and potentially enhancing fee earnings.
As opposed to V2 this changes how trading fees are handled. Fees are not automatically compounded and must be claimed manually.
If the market price moves outside a provider's chosen range, their position becomes inactive, ceasing to earn fees.
