Ensured DEX enables trading between different ERC-20 tokens on the Ethereum and other EVM-compatible blockchains. Ensured DEX specializes in providing tailored trading solutions between correlated and uncorrelated assets.
In its initial iteration Ensured DEX supports the following 2 liquidity pool types:
Volatile pools are defined as assets that have no direct correlation in price, examples are Chainlink (LINK) and Ethereum (ETH). The price of ETH has no relation to the price of LINK.
Volatiles pairs use the following formula to determine the price:
x × y ≥ k
Stable pools are defined as assets that have a direct correlation to each other. Examples are USDC/USDT, wBTC/multiBTC, frxETH/wETH etc. The price of the 2 assets will trade very close to each other and thus a different approach can be taken to allow for much higher volume at low slippage.
Stable pairs use the following formula to determine the price: