Parallel Automated Market Maker (AMM)
Parallel AMM (Automated Market Market) allows non-custodial and decentralized trading of assets using a pallet that functions similarly to smart contracts. This defines the price of the asset and provides liquidity to facilitate trade. Initially, users can swap PARA, DOT, and cDOT and add liquidity to DOT/PARA, cDOT6–13/PARA, DOT/cDOT6–13, DOT/cDOT7–14 pools to earn yield. Other liquidity pools will be added in due course so that our users can have a robust earning stream.
Swap for PARA, DOT, or cDOT
To use our AMM is to swap assets in a permissionless fashion.
1. Connect Wallet
In this initial release, you will be able to swap PARA, DOT or cDOT and add two of them to a liquidity pool to earn yield. As always, to get started, you will want to click the “Connect Wallet” button at the top right-hand corner.
2. Once your wallet is approved, you will see an interface with Swap and Liquidity tabs.
On Swap, you can exchange:
- PARA for DOT or cDOT6–13
- DOT for PARA or cDOT6–13 or cDOT7–14
- cDOT6–13 for DOT or PARA
- cDOT7–14 for DOT
You should see the balance for either of the tokens you have and exchange it for the other option
3. Insert how much you would like to swap.
*Be sure to leave enough PARA or DOT or cDOT for Transaction Fees listed just under the swap button.
Once you have accepted the fees, your wallet will open up and ask you to sign/approve the transaction. Upon approval, you will see a Transaction success notification on the top right-hand corner, near the wallet.
4. To participate in our liquidity pool, you need both PARA and DOT and cDOT. Swap out a portion of your PARA or DOT or cDOT prior as both token contributions must be equal.
Now you’ll be able to see the details of the liquidity addition. Here you will see how many liquidity pool tokens you will receive, as well as your contribution percentage of said pool. Below the confirm button, you will see the transaction fee for adding liquidity.
5. After assessing the fees and rewards, click the confirm button.
6. Next, confirm the transaction by clicking the ‘sign the transaction’ button from the pop-up window
Shortly after, a success message will appear confirming your addition to the liquidity pool.
With Parallel’s easy-to-use and straightforward interface, users can execute swaps and add liquidity in less than 5 minutes.
7. To view how much liquidity you have provided click “My Dashboard”
8. You will now see the different pools you have contributed to and select “Manage” next to the one you would like to see details for.
Here you can add or withdraw liquidity.
To withdraw simply select “Withdraw”
After withdraw, as always, “Sign the transaction”
Once confirmed, a Transaction Success message will appear in the top right corner.