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FAQs
Frequently asked questions about the Algofi DEX.

Is the Algofi DEX audited?

Yes, the Algofi DEX has been audited by Runtime Verification and NCC Group. See our audit here.

Why does it cost algos to create a pool?

Besides transaction fees, the cost comes from two sources: (1) minimum balance requirements of the user and (2) minimum balance requirements of the logic sig and pool application. Creating applications, opting into applications, and using global state all require additional algo minimum balances. This is done to prevent exponential growth in the data that are saved to the Algorand blockchain. See the Algorand Parameter Table for more information.
When a user creates a pool, they create an application and a logic sig that is opted into the manager application. The application opts into the relevant assets and creates an LP token, which increase the minimum balance of the user, application, and logic sig.

Is the Algofi DEX Ledger compatible?

Yes, the Algofi DEX's group transactions have been designed specifically to take advantage of AVM 1.0 while being compatible with the Ledger constraints: https://connect.myalgo.com/docs/getting-started/important-considerations/

Why are there multiple fee tiers?

Multiple Fee Tiers allow given liquidity providers (LPs) the option of what fee to earn for a given trade. More volatile pools should command greater fees to offset the risk of Impermanent Loss (IL). The Algofi DEX currently supports 0.25% and 0.75% fee tiers.

Why are there flash loans?

Flash loans enable traders the ability to conduct arbitrage trades like Triangle Arbitrage without needing capital. Users can freely borrow from the Algofi DEX pools and the smart contracts guarantee the assets are repaid within the same group transaction.

Why is the app just a white screen?

There are some issues with the Algofi app that are still being worked on and improved. In some instances app.algofi.org loads to a blank white page for a given user. This is usually a result of stale data in that user's cache.
This is a hard problem for the Algofi team to robustly debug and fix as these issues are usually not replicable by the development team. That being said, Algofi continues to locate and remove possible sources of this issue. In turn, the frequency of occurrence continues to decrease.
Please clear your cache if you experience this issue and it should immediately resolve.
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Outline
Is the Algofi DEX audited?
Why does it cost algos to create a pool?
Is the Algofi DEX Ledger compatible?
Why are there multiple fee tiers?
Why are there flash loans?
Why is the app just a white screen?