Ladex
Lachain native DEX
Last updated
Lachain native DEX
Last updated
Ladex is decentralized exchange on Lachain. Apart from typical farming and swaps, Ladex contains unified liquidity pools of omnichain tokens used for cross chain transactions.
Ladex pools have shared access of a single liquidity pool between multiple chains.
Omnichain Tokens traded on Ladex are the user-desired assets (native or most liquid synthetic) on the destination chain.
Lachain Bridge protocol uses LaDEX to buy gas tokens to pay for transactions, and exchange crypto via LA as an intermediary token. Unlike other bridges, Lachain leverage unified liquidity pool of LaDEX and thus the same liquidity can be reused to multiple chains and tokens.
Swaps
Users can trade or swap an amount of tokens for an automated computed amount from the second token. The Automated Market Making concept relies on a mathematical formula to price assets. Instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm. LA DEX uses the sushiswap-like constant product formula x * y = k, where x is the amount of one token in the liquidity pool, and y is the amount of the other . In this formula, k is a fixed constant, meaning the pool’s total liquidity always has to remain the same
How to trade tokens
1) Go to the Trading page.
2) Connect your wallet
3) Select the token you would like to trade.
4) Once you have selected tokens to swap, enter the quantity to trade and press 'SWAP'.
If the token you are trading has a reflect element, you may need to increase slippage.
5) Your wallet will pop up asking for confirmation to Swap, press Confirm.
6) Once confirmed in your wallet, you will see a 'Transaction Submitted' pop up and after a few seconds, your trade should be completed!
Liquidity pools
Liquidity pools are place to pool tokens (which we sometimes call liquidity) so that users can use them to make trades in a decentralized way. These pools are created by users and decentralized apps (or Dapps, for short) who want to profit from their usage. To pool liquidity, the amounts a user supplies must be equally divided between two coins: the primary token (sometimes called the quote token) and the base token (usually ETH or a stable coin). LADEX's liquidity pools allow anyone to provide liquidity at the following link: https://test.ladex.exchange/pool When they do so, they will receive LLP tokens (LAToken Liquidity Provider tokens). If a user deposited $LA and $ETH into a pool, they would receive LA-ETH LLP tokens. These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point. Every time another user uses the pool to trade between $LA and $ETH, a 0.3% fee is taken on the trade. 0.25% of that trade goes back to the LP pool. The value of the SLP tokens, which represent the shares of the total liquidity each pool, is updated with each trade to add their value relative to the tokens the pool uses to trade. If previously there were 100 LLP tokens representing 100 ETH and 100 LA, each token would be worth 1 ETH & 1 LA (note in this example, ETH and LA are the same relative value). If a user were then to trade 10 ETH for 10 LA in that pool, and another user was to trade 10 LA for 10 ETH, then there would now be 100.025 ETH and 100.025 LP. This means each LP token would be worth 1.0025 ETH and 1.00025 LP now when it is withdrawn. If you are unfamiliar with the concept of impermanent loss, reviewing this article for a basic understanding is highly recommended.
Instruction how to add liquidity
1. Grab your tokens and head to the Pools page
2. Find the desired pool by using the page filters and/or typing in the Tokens you wish to deposit, eg 'LA' or 'USDT
3. Once you have selected the correct Pool, you will see the Pool page
4. Here, you can add Tokens and also Amend slippage if necessary.
5. Once you add in Tokens, you'll have to Approve in your Metamask + then Deposit the Tokens.
6. Done, you are now earning your share of Trading Fees generated by the Pool!
Instruction how to remove liquidity
1. Simply head to the Pool you wish to remove tokens from and hit 'Remove'. Now enter the required Tokens to remove or use one of the preselected % buttons (The ratio of tokens needed will be automatically filled).
2. Once you have selected the amount to remove, you will need to approve the transaction in order to remove the Tokens.
3. Your wallet will provide you with Confirmation requests, once completed you will have your original Tokens back in your wallet!
Deposit your Liquidity Pool tokens into a farm to earn extra yield
Extra yield is rewarded in $LA Tokens.
After you deposit your Tokens inside a Yield Farm, you will also continue to earn Trading Fees from the Liquidity pool
Connect and confirm your wallet.
Navigate to the Pools page.
Search for the Pool you wish to enter Tokens into, eg (LA + USDT).
Then, go to the Farm page and select the same Farm you entered in the pool (LA + USDT).
You are now viewing the ‘Manage Farm’ page.
This contains the Farm details including Liquidity, Pool Weight & APR.
On the right hand side, enter the amount of LP tokens and then deposit.
Confirm the transaction in your wallet.
Congratulations, you are now earning $LA rewards from the Farm
