AMM
Automated Market Maker (AMM)
The Automated Market Maker (AMM) is a trading station on the right side of the DeSat Bank in Arcadia. Players swap items and gold at dynamic prices, and can supply liquidity to earn rewards—but beware impermanent loss!
“Demand and supply in-game has direct effects on prices of AMM-listed items. Add liquidity to stabilize prices and receive tokens as rewards. Learn about impermanent loss.”[1]
What is an AMM?
An AMM is a decentralized exchange (DEX) using automated formulas for pricing.
Players can trade Seeds, Ores or gold instantly—prices shift with each transaction.
AMM Interface Elements
- Order Type: Instant (market) or Limit
- Item to Swap & amount
- Item to Receive & amount
- Slippage (%)
- Transaction Fee
What is Slippage?
Slippage is the gap between the expected and actual received value in a trade.
Tip: Slippage is what you lose during a transaction.
For example, selling 200 Iron Ore at 10 gold each → expect 2 000 gold, but receive only 1 870 gold. You lost 130 gold in slippage.
Minimizing Slippage
- Keep orders small—larger orders incur higher slippage.
- Adjust the slippage slider before swapping.
- Use Limit orders to execute trades at or above your target price.
Liquidity Pools
Each AMM pool pairs two assets (e.g., Coal ⇄ Gold). Contributing both sides forms a Liquidity Pool to balance supply and demand.
“A Liquidity Pool is a shared resource pool that helps stabilize asset prices.”
Impermanent loss can occur when asset prices diverge—learn more: Impermanent Loss.
LP Tokens
Providers earn LP Tokens, representing their share of the pool and a cut of transaction fees paid out as Gold Bonds. Redeem Gold Bonds with Clyde for gold.[2]
Adding Liquidity
Under the Add Liquidity tab:
- Supply 12 Coal + 133 Gold → receive 345 271 Coal-Gold LP Tokens
Removing Liquidity
Under the Remove Liquidity tab:
- Burn 88 447 LP Tokens → receive 37 Coal + 523 Gold
When to Provide Liquidity
- You hold large asset balances
- Pool pair shows stable prices
- High trading volume (more fees)
As of February 2025, Seeds pools yield stronger returns.
“Impermanent loss can outweigh rewards if asset prices swing widely—sometimes holding is safer than pooling.” – zoltan
Community Requests
Players have asked for an Auction House as an alternative to AMM:
“An AH would suit large-item trades — avoids slippage wars and 24/7 monitoring.” – zoltan