Platform Feature Guides

Dalmatian Exchange Overview:

Dalmatian Exchange is a decentralized exchange protocol built on the Shibarium blockchain. It's an automated market maker (AMM) platform that allows users to trade Shibarium-based tokens directly from their wallets without the need for intermediaries.

Basic Mechanism: Dalmatian Exchange operates through liquidity pools, which are smart contracts holding pairs of tokens. These pairs can be traded against each other. The protocol relies on the constant product formula to determine the pricing and exchange ratios of tokens within the pool.

Creating a Liquidity Pool: Any user can create a liquidity pool by providing an equal value of two tokens to the pool. For example, if you want to create a pool for token A and token B, you would provide an equivalent value for both tokens. This contributes to the initial liquidity of the pool.

Swapping Tokens: When a user wants to swap one token for another, they interact with the liquidity pool directly. The algorithm calculates how much of the second token the user will receive based on the existing ratio in the pool. As trades occur, the ratio changes, which is what provides the constant product mechanism.

Liquidity Providers: Users who provide tokens to liquidity pools become liquidity providers. They earn a portion of the trading fees generated by the protocol in proportion to their contribution to the pool's liquidity.