Aldrin (Rin) Exchange: What is it?
With Aldrin, both beginners and advanced traders can use digital assets to trade with ease. It operates on the Solana network via a decentralized cryptocurrency exchange (DEX). A centralized exchange will be launched soon by Aldrin, allowing it to meet the requirements of various traders.
In addition to creating the most powerful tools for traders, it simplifies the DeFi space for normal users, and it was previously known as Cryptocurrencies.AI.
In this platform, RIN tokens are native, utility tokens. To support the exchange’s reward system and encourage users to participate in the protocol’s activities, this token is used. It is also possible for users to participate directly in the governance mechanism of the project by voting on some of the parameters that will affect the protocol in the future.
RIN plans to implement its Automated Market Maker based on Solana soon to facilitate faster trade. By contributing assets to support the liquidity of the exchange as well as earning rewards, users will also be able to contribute to it.
When the centralized exchange is up and running, there will be a buyback and burn option. This means that the RIN tokens paid in transaction fees will be repurchased from the market and then burned. A more sustainable token price can be achieved using this method in the future.
Token staked by users can earn the user additional RIN tokens. Users will be rewarded proportionately based on how much revenue the platform generates from their activities. In addition, stakeholder shares will also be included in the distribution of RIN tokens.
Automated Market Maker (AMM):
The liquidity needed to facilitate Aldrin’s DEX trades is not provided by one entity or broker. Liquidity pools, or deposits of cryptocurrencies from network users, support the assets traded on the platform.
Through its automated market makers, Aldrin allows users to trade without having third parties involved in the final decision. By contributing to liquidity pools, users can gain tokens as rewards as well as gain access to additional opportunities to earn from the network.
As for the technical aspects of AMM’s, AMM’s like Aldrin’s rely on smart contracts to execute instant token swaps with liquidity pools. These trading pairs offer users flexibility depending on their asset supply needs. It eliminates the need for any exchange operators or middlemen to ensure that enough liquidity is available to support trades via the platform.
Features: What are they?
As of now, spot trading and automated rebalancing are among the accessibility features available on the platform. Multiple cryptocurrencies can be purchased and sold simultaneously using spot trading. As opposed to manual rebalancing, automated rebalancing allows the user to maintain the desired allocation of their portfolio.
There are currently features like futures trading and smart orders in close beta. In addition to smart trading on Aldrin DEX, smart trading will be available by the 4th quarter of 2021. At the moment, they are collaborating with Binance on their centralized exchange platform.
With Smart Order, users can automate trades based on risk and profit parameters. In this section, you’ll be able to set your entry and exit points, stop losses and take profit levels.
The futures market is a platform that offers users the capability to engage in leveraged trading, resulting in greater profits. Users can amplify their returns when they trade futures by expanding their positions and trading larger amounts. In the months ahead, more users will be able to access this since it is currently held as a closed beta.
On the platform, it is easy to perform hedging, a risk management option. These strategies are often used by traders who want to minimize the risk of losses resulting from changes in the market. To do this on Aldrin, you simply open a hedging account where you can place hedging positions. The process of opening and monitoring new positions is abstracted during this step.
Why It is perfect in Solana?
The perfect fit between Aldrin and Solana is that Aldrin’s aim is instantaneous trades. 57 to 570 global validators support the network, making it capable of secure, fast, and censorship-free transactions. With an average transaction fee of $ 0.00025, Solana is also set to attract huge adoption, even with only a rapidly popularizing technology.
In addition, Solana is capable of processing 50,000 transactions per second. Aldrin’s DEX will be able to provide instantaneous atomic swaps with its high transaction throughput.