Background

Rammdex

Rammdex is the world's first Risk Automated Market Maker (RAMM). We use the last 2 digits of the Polygon hash string as the result.

Risk Automated Market Maker (RAMM)

- The Risk Automated Market Maker (RAMM) is anenhancement to the Automated Market Maker (AMM). While the AMM provides security for investors with traded assets, it still relies on the market and is subject to the risk of price slippage. RAMM not only ensures investor safety, but also provides a manipulation-resistant trading method based on blockchain results.

How do RAMMs work?

- RAMMs work similarly to AMMs. Risk Automated Market Makers (RAMMs) use smart contracts to confirm trades and provide cryptocurrency tokens to the liquidity pool. However, they use two opposing liquidity pools to exchange risk and receive the result of a future hash.

RAMM works according to the formula:

x*a = y*b

In this context:

- a and b are the accepted risk levels.

- x represents Party A's assets.

- y represents Party B's assets.

- x and y share the same cryptocurrency token, but the choice of future blockchain outcomes are inversely correlated.

However, to avoid excessive slippage in case of deviation between x and y, which poses a risk to investors, we have implemented a 3-tier order book: 1:1, 0.5-0.95:1, 1:0.95-0.5, combined with liquidity contractors to mitigate slippage between x and y while maintaining good liquidity.

- If DeFi brings decentralization and security to investors, RAMM is the missing piece of DeFi. It not only provides safety for investors, but also helps them trade safely, free from market manipulation.

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