Trading Spread

The Trading Spread in the AMM model is designed to emulate order book liquidity depth and replicate market-making slippage dynamics.

Under typical conditions, price slippage remains minimal.

• Bid Ask Mechanism

Market prices are sourced from an off-chain oracle system, which continuously signs price data based on when each price is queried.

For every query, both minimum and maximum prices are signed, allowing the oracle to convey bid-ask spread information.

• Implemented Close Spread

Improves overall market stability and better mirrors order book dynamics. The close spread depends on the depth of the opposing side in the order book.

• Enhanced Safeguard

A specialized protection is added to closing spreads for trades that have been open for under certain minutes and are showing a positive profit. This measure specifically deters price manipulation, while still permitting narrower spreads for regular trading activity