Hogi fin was a challenging project for us. We have previously worked on defi protocols, but HOGI Fin is an automated market maker. In practice, it is a set of smart contracts that establish a standard method for creating liquidity pools, providing liquidity, and swapping assets.
There are two assets in each liquidity pool. The pools maintain track of aggregate liquidity reserves and liquidity providers’ pre-defined pricing methods. Every time someone trades, reserves and prices are automatically adjusted. There are no central order books, third-party custody, or private order matching engines.
A HOGI Fin pool can always be utilized to purchase or sell a token since reserves are automatically rebalanced after each deal – unlike traditional exchanges; traders do not need to match with particular counterparties to execute a trade.
You may incentivise in-range liquidity provision on a HOGI Fin pool as a DeFi project, token creator, or other interested party.
Constant Product Market Maker Model:
The adoption of a pricing method known as the “Constant Product Market Maker Model” distinguishes HOGI Fin from other decentralized exchanges. HOGI Fin may accept any token by financing it with an identical amount of ETH and the ERC20 token being swapped.
No authorization is required to list any ERC20 token on HOGI Fin. Each coin has its own smart contract and liquidity pool, which may be readily formed if one does not already present.
When a coin has its own exchange smart contract and liquidity pool, anybody may trade it or contribute to the liquidity pool while receiving a 0.3 percent liquidity provider fee.