TiTi-AMMs (M-AMMs)
Last updated
Last updated
TiTi-AMMs, (In the whitepaper and the source code, we call it Monopoly-AMMs, ie M-AMMs), plays an important role in TiTi Protocol because compared with the mortgage, casting, or auction, users have the most precise understanding of the transaction process and principles. It is the core mechanism for adjusting the TiUSD circulation, which makes a primary TiUSD market through specific trading strategies to maintain stability.
Users can exchange their assets for another kind of asset they need at the agreed price. In the process of exchange, users only care about two factors, price and trading slippage. In this way, protocol complexity embodies in indicators that are easy for them to understand. The protocol makes it very easy for users to understand how the protocol effectively adjust the two factors, thus gaining trust, which dramatically reduces the user's education costs and avoids unnecessary market panics.
In TiTi-AMM, we use the constant product market-making algorithm at the beginning, which follows the following rules:
Where X and Y respectively represent the quantity of the two assets in the AMM pool. This is a modular design. In the future, we will launch more AMM algorithms that meet market demand.
