Decentralized Exchange
NEPRI TFA will implement a Constant-Function Automated Market Maker (CFMM) - NEPRIswap - as a decentralized exchange mechanism for trading tokenized synthetic assets against stablecoins. This is equivalent to simply transferring ownership to another party, since there is no change in CDP status and total open interest does not change (unlike minting or burning).
The CFMM employs a constant-product function, like Uniswap, based on the equation x × y = k. Each market is by default a 50:50 pair between the tokenized synthetic asset and the nYUSD stablecoin. One important difference is that each pair can be optimised to the volatility of its particular synthetic asset, allowing for the customization of minimum and maximum spreads as well as commissions.
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