Protocol Parameters
Protocol Parameters for the Algofi NanoSwap.
Amplification Factor
Amplification factor, also known as peg multiplier, is a pool parameter that determines the amount of slippage allowed by the invariant calculation. You can read about the details in the original whitepaper.
The higher the amplification factor value, the less slippage is allowed, and conversely the stronger is the exchange rate peg. The maximum peg multiplier is 400, at which point the invariant closely resembles a constant sum formula.
The initial values were conservatively set to 5 for STBL pools, and 10 for USDC-USDT pools. As the ecosystem matures and more liquidity flows into the pool, this value is set to increase, allowing for even stronger peg.
Pool LP Fees
NanoSwap pools support custom fees per pool.
The initial value is set to 0.10%, with subsequent changes to be done via a governance vote. The governance contracts and DAO are coming soon.
Protocol Reserves
The protocol takes a percentage of the LP fees known as the Protocol Reserve Factor.
The protocol reserve factor is currently set to 0%.
Flash Loans
The Algofi DEX supports Flash Loans
Max Flash Loan: 10% of Pool Asset
Flash Loan Fee: 0.10%
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