From 2032749af0c0169ea59bade0cadc878654c1370f Mon Sep 17 00:00:00 2001 From: mDuo13 Date: Thu, 14 Dec 2023 16:37:04 -0800 Subject: [PATCH] Update AMM discounted trading fee --- .../tokens/decentralized-exchange/automated-market-makers.md | 2 +- .../public-api-methods/path-and-order-book-methods/amm_info.md | 2 +- .../references/protocol/ledger-data/ledger-entry-types/amm.md | 2 +- 3 files changed, 3 insertions(+), 3 deletions(-) diff --git a/content/concepts/tokens/decentralized-exchange/automated-market-makers.md b/content/concepts/tokens/decentralized-exchange/automated-market-makers.md index ca5fdc7bed..472ebd3491 100644 --- a/content/concepts/tokens/decentralized-exchange/automated-market-makers.md +++ b/content/concepts/tokens/decentralized-exchange/automated-market-makers.md @@ -70,7 +70,7 @@ To vote, a liquidity provider sends an [AMMVote transaction][]. Whenever anyone ### Auction Slot -Unlike any previous Automated Market Makers, the XRP Ledger's AMM design has an _auction slot_ that a liquidity provider can bid on to get a discount on the trading fee for a 24-hour period. The bid must be paid in LP Tokens, which are returned to the AMM. No more than one account can hold the auction slot at a time, but the bidder can name up to 4 more accounts to also receive the discount. There is no minimum bid, but if the slot is currently occupied then you must outbid the current slot holder to displace them. If someone displaces you, you get part of your bid back depending on how much time remains. As long as you hold an active auction slot, you pay a discounted trading fee of 0% when making trades against that AMM. +Unlike any previous Automated Market Makers, the XRP Ledger's AMM design has an _auction slot_ that a liquidity provider can bid on to get a discount on the trading fee for a 24-hour period. The bid must be paid in LP Tokens, which are returned to the AMM. No more than one account can hold the auction slot at a time, but the bidder can name up to 4 more accounts to also receive the discount. There is no minimum bid, but if the slot is currently occupied then you must outbid the current slot holder to displace them. If someone displaces you, you get part of your bid back depending on how much time remains. As long as you hold an active auction slot, you pay a discounted trading fee equal to 1/10 (one tenth) of the normal trading fee when making trades against that AMM. With any AMM, when the price of its assets shifts significantly in external markets, traders can use arbitrage to profit off the AMM, which results in a loss for liquidity providers. The auction mechanism is intended to return more of that value to liquidity providers and more quickly bring the AMM's prices back into balance with external markets. diff --git a/content/references/http-websocket-apis/public-api-methods/path-and-order-book-methods/amm_info.md b/content/references/http-websocket-apis/public-api-methods/path-and-order-book-methods/amm_info.md index 4f569cfb59..00042ff47c 100644 --- a/content/references/http-websocket-apis/public-api-methods/path-and-order-book-methods/amm_info.md +++ b/content/references/http-websocket-apis/public-api-methods/path-and-order-book-methods/amm_info.md @@ -226,7 +226,7 @@ The `auction_slot` field of the `amm` object describes the current auction slot |------------------|---------------------|-------------| | `account` | String | The [Address][] of the account that owns the auction slot. | | `auth_accounts` | Array | A list of additional accounts that the auction slot holder has designated as being eligible of the discounted trading fee. Each member of this array is an object with one field, `account`, containing the address of the designated account. | -| `discounted_fee` | Number | The discounted trading fee that applies to the auction slot holder, and any eligible accounts, when trading against this AMM. This is always 0. | +| `discounted_fee` | Number | The discounted trading fee that applies to the auction slot holder, and any eligible accounts, when trading against this AMM. This is 1/10 of the AMM's normal trading fee. | | `expiration` | String | The ISO 8601 UTC timestamp after which this auction slot expires. After expired, the auction slot does not apply (but the data can remain in the ledger until another transaction replaces it or cleans it up). | | `price` | [Currency Amount][] | The amount, in LP Tokens, that the auction slot holder paid to win the auction slot. This affects the price to outbid the current slot holder. | | `time_interval` | Number | The current 72-minute time interval this auction slot is in, from 0 to 19. The auction slot expires after 24 hours (20 intervals of 72 minutes) and affects the cost to outbid the current holder and how much the current holder is refunded if someone outbids them. | diff --git a/content/references/protocol/ledger-data/ledger-entry-types/amm.md b/content/references/protocol/ledger-data/ledger-entry-types/amm.md index f8743cb65b..6f7a599a06 100644 --- a/content/references/protocol/ledger-data/ledger-entry-types/amm.md +++ b/content/references/protocol/ledger-data/ledger-entry-types/amm.md @@ -89,7 +89,7 @@ The `AuctionSlot` field contains an object with the following nested fields: |:----------------|:--------------------|:------------------|:----------|:--| | `Account` | String - Address | AccountID | Yes | The current owner of this auction slot. | | `AuthAccounts` | Array | STArray | No | A list of at most 4 additional accounts that are authorized to trade at the discounted fee for this AMM instance. | -| `DiscountedFee` | String | UInt32 | Yes | The trading fee to be charged to the auction owner, in the same format as `TradingFee`. By default this is 0, meaning that the auction owner can trade at no fee instead of the standard fee for this AMM. | +| `DiscountedFee` | String | UInt32 | Yes | The trading fee to be charged to the auction owner, in the same format as `TradingFee`. Normally, this is 1/10 of the normal fee for this AMM. | | `Price` | [Currency Amount][] | Amount | Yes | The amount the auction owner paid to win this slot, in LP Tokens. | | `Expiration` | String | UInt32 | Yes | The time when this slot expires, in [seconds since the Ripple Epoch][]. |