Dear CoinEx users,
To provide you with more trading options, after rigorous reviews, CoinEx will list SOMM and support deposit and withdrawal & Automated Market Making (AMM) on Oct 26, 2023 (UTC). And its trading pair SOMM/USDT will be available on the same day.
1. Deposit: 07:00 Oct 26, 2023 (UTC)
2. Withdrawal: 07:00 Oct 26, 2023 (UTC)
3. Trading pair: SOMM/USDT
4. Opening method: Call Auction
a. Call Auction
07:00-09:50 Oct 26, 2023 (UTC)
Orders can be placed and canceled
09:50-10:00 Oct 26, 2023 (UTC)
Orders can be placed but cannot be canceled
10:00 Oct 26, 2023 (UTC)
Sommelier creates an intelligent vault that could adjust its composition based on current market conditions or predetermined metrics. Moreover, Providing an architecture that allows the metric calculations to be done off-chain while utilizing live data feeds to adjust your current positions, and only the newer instruction set needed to be sent to the vault, creating more nimble, flexible, and most importantly, profitable and resilient vaults.
Features and Advantages of Smart Vaults:
(1) Predictive Capability: Sommelier's smart vaults can use time-series forecasting methods to estimate future base yields. This means they can predict market trends based on historical data.
(2) Responsive: In case of significant market changes (e.g., unwinding), the vaults can rebalance holdings to adapt to the new market conditions. They can quickly adjust leverage ratios if market conditions change, helping to avoid liquidation.
(3) Optimization Ability: Vaults can employ highly capital-efficient solutions to accumulate leverage, significantly reducing gas/flash loan fees that are typically incurred. Additionally, they can optimize the price range of Uni V3 while considering impermanent losses.
(4) Adaptability: Vaults can update their algorithms and integrate protocols continuously to capture new yield opportunities. This means they can flexibly adapt to ever-changing market conditions.
(5) Off-Chain Computation: Unique architecture that allows Sommelier to ingest data input from off-chain models. This keeps the strategy private as well as allows the vault to be fed information from data models.
(6) No Bridged Assets: Multichain access without bridged assets.
(7) Cosmos SDK for Efficiency: By using the Cosmos SDK, Sommelier can offer a modular and robust protocol with Tendermint Consensus, a world-class and tested protocol layer. Using Cosmos allows fewer transactions to be performed on Ethereum, which keeps gas costs low.
(8) Controlled by Validators and Decentralized Governance: Transactions are managed by the Sommelier validator set with decentralized governance, so Sommelier cannot steal user funds, the network function is entirely responsive to user preferences and the protocol remains censorship-resistant.
What is Automated Market Making (AMM)?
Automated market making (AMM) can calculate the buying and selling price according to the formula, so as to provide a continuous quotation for the market. CoinEx combines AMM with the order book, which means the liquidity pool will be automatically converted into the order book. With the "constant product market maker formula" algorithm in AMM, no matter how large the order book is or how small the liquidity pool is, firm liquidity provision to the market can be guaranteed. Learn more
Fees and Profit
Market supporting automated market making is an AMM market. Compared with normal market, AMM market adopts an independent fees system. The fees for both marker and taker is 0.3%, for market makers is 0.15%. VIP will not enjoy any special fees, and using CET for fees deduction is unavailable. All users are qualified to apply for market makers, and 50% of the market's transaction fees will be rewarded to liquidity providers.
Characteristics of AMM
1. Bonus obtainable from automated market making
User’s provided liquidity will be injected into the pool for automated market making. 50% of the market's transaction fees will be rewarded to liquidity providers in terms of the corresponding pool proportion.
2. Daily bonus can be cumulatively withdrawn
The transaction fee bonus will be calculated once a day and automatically credited into the user's Market Making Account before 4:00 (UTC) the next day. The user can obtain all the accumulated fee bonus after removing liquidity.
3. Free access, no charge required
Assets between Spot Account and Market Making Account can be transferred in real-time by adding and removing liquidity. Each user in a single market can increase liquidity twice a day, and no fees will be charged during the operation.
The assets in the Market Making Account will be injected Into the liquidity pool for automated market making. When the price fluctuates, there will be impermanent losses, and the amount of the two assets will change when the liquidity is removed. More details about impermanent losses
Oct 25, 2023