ConcaveFi Gitbook
The innovative design of CNV AMM algorithm allowing LPs to deploy deep liquidity allows for different pairs (e.g. CNV-DAI) to accrue extremely deep liquidity within a tight peg and allows LPs to earn more with less capital investment. The AMM has been optimized with cheaper gas fees and swap fees to be set at 0.25%.
Why do we need our own AMM? It can better support the development of bonding, for example, when a bonding event occurs, we can freely control the proportion of added liquidity through the bonding machine, which will be more flexible and controllable in our own AMM.
Graph - Constant Function Market Maker (CFMM) , x * y = k
CNV charges a 0.25% fee for all trades and is added to the liquidity pool of the token pair that was traded on. A liquidity pool (LP) is a pool of two tokens, e.g. CNV and DAI tokens. This pool is what allows users to exchange between the two tokens automatically.
TUTORIAL: How to add liquidity and remove liquidity from a pool
Adding Liquidity Pool
1.Grab your tokens and head to the Pools page
2.Find the desired pool by using the page filters and/or typing in the Tokens you wish to deposit, eg. 'CNV' or 'DAI'.
3.Once you have selected the correct pool, you will see the pool page.
4.Here you can add Tokens and also amend slippage if necessary.
5.Once you have added in Tokens, you'll have to approve in your wallet then deposit the Tokens.
6.Done, you are now earning your share of trading fees generated by the pool!
Removing Liquidity Pool
1.Simply head to the pool you wish to remove tokens from and hit 'remove'. Now enter the required Tokens to remove or use one of the preselected % buttons (The ratio of tokens needed will be automatically filled).
2.Once you have selected the amount to remove, you will need to approve the transaction in you wallet order to remove the Tokens.
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