🔁Exchange Mechanisms
Last updated
Last updated
The exchange mechanisms are the heart of the Noodle Fi platform, facilitating various financial operations and trades. These mechanisms have been designed keeping in mind the need for efficiency, security, and reliability.
The Multi-Asset Pool, or MAP, is a critical component of the Noodle Fi exchange. It's a liquidity pool containing a diverse range of assets.
Composition: The MAP is made up of a balanced mix of assets such as stablecoins, major cryptocurrencies like Bitcoin and Ethereum, and select altcoins. The ratio and composition of these assets are regularly adjusted to ensure the stability and health of the pool.
Liquidity Provision: Users can contribute to the MAP, thereby providing liquidity to the platform. In return, they earn a portion of the trading fees generated from the exchange operations. This system incentivizes users to contribute to the pool, ensuring that the platform remains liquid and functional.
Trade Execution: When users wish to trade or swap assets, they interact with the MAP. The pool automatically adjusts its asset ratios after each trade, ensuring that it remains balanced.
Price oracles and stability mechanisms are essential for ensuring that the platform remains stable and that the prices of assets reflect their true market value.
Price Oracles: These are systems or services that provide real-time price data for various assets. Noodle Fi integrates multiple price oracles to fetch accurate and timely price information. The platform does not rely on a single oracle but aggregates data from multiple sources. This redundancy ensures that the platform remains resistant to price manipulation and single points of oracle failures.
Stability Mechanisms: These are a set of protocols and algorithms in place to ensure that the MAP and other financial operations on Noodle Fi remain stable. For instance, if there's excessive volatility in one of the assets in the MAP, the stability mechanisms can trigger certain actions, like rebalancing the pool or adjusting trading fees, to restore equilibrium.
