How does Alammex work?

Summary

The value of any token can change quickly at any point in time. Therefore, the best priced swap is not always on one DEX and may involve a combination of swaps across many DEXes.

Here are some key features for how Alammex discovers the best priced swaps.

Smart Order Routing

Alammex directly connects all AMM pools and limit orders together no matter the provider and will find all direct and atomic 2-hop routes between any two tokens on Alammex.

Swap Splitting

Alammex will split your swap into smaller swap sizes. For example, if you want to make a 100 USDC-ALGO swap, it may distribute your swap into a 30 USDC-ALGO swap on Tinyman and a 70 USDC-ALGO swap on Pact. The % distribution of the swaps is dynamically computed to give you the best price. Swap splitting helps get better prices for large size swaps and swaps with tokens where there is shallow liquidity spread out across a number of DEXes.

Multi-hop Routes

In some cases where a token pair has low liquidity across all sources in the ecosystem, Alammex may find the best price by routing through an intermediary token, e.g. USDC-ALGO-DEFLY instead of USDC-DEFLY. This may be due to price inefficiencies and/or volatility in the various markets that Alammex routes through. Multi-hop routes can be part of split swaps.

Other key features of Alammex

Automatically lists new markets

The number of tokens and liquidity pools increases daily. Alammex automatically recognizes any market or pool for any of the DEXes it currently aggregates. This ensures that Alammex always has the latest liquidity for any token that is listed as soon as it is available.

Atomic Swaps

Alammex has worked to optimize its swap aggregation so that swapping can be done in one transaction group, if possible. This is important to handle cases where the price for the token you are buying has changed and no longer fits your slippage limit. Swaps on the following DEXes can be grouped together:

  • Humble

  • Pact

  • Algofi

  • FXDX

Atomic 2-hop routes can also be grouped together with other swaps.

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