Introduction
Axial is a Decentralized Finance (DeFi) protocol built on the Avalanche blockchain. It is the fully decentralized centerpiece for liquidity of value-pegged assets on the ecosystem. It was launched on November of 2021, and is one of many projects originating from the Snowball DAO.
Core Features
Swapping - Swap between stablecoins alongside other bridged, wrapped or synthetic assets/derivatives on Axial, with significantly reduced fees compared to traditional DEXs.
Providing Liquidity - Provide liquidity to the protocol and earn risk-averse returns through others utilizing your liquidity to perform trades, as well as AXIAL token incentives.
Liquidity Pools
Currently, the following pools are available to swap or provide liquidity in:
AS4D Pool - TUSD, USDC.e, DAI.e, USDT.e
AC4D Pool - TSD, MIM, FRAX, DAI.e
AM3D Pool - MIM, USDC.e, DAI.e
AA3D Pool - AVAI, MIM, USDC.e
USDC-AM3D Metapool - USDC, AM3D
Remember that depositing liquidity into a liquidity pool nets you swap fees - but to earn extra rewards on top of that you should then deposit your LP tokens into one of our farms!
Why use Axial over other DEXs?
If you're looking for liquidity for most assets, there are amazing DEXs on Avalanche such as Trader Joe or Pangolin. Axial is focusing on providing liquidity for value-pegged assets, which means we can provide the following benefits to our users:
- Dramatically lower swap fees for these value-pegged assets.
- Little to no impermanent loss when providing liquidity.
Swapping with Axial
Swapping between value-pegged assets with Axial will net you much better rates than with other exchanges, not only because you'll be paying a fraction of the fees to do so, but also due to the different underlying model used to calculate token values and swaps.
In this model, with more than 2 tokens per pool, you are able to achieve much lower slippage on trades, regardless of how small or large the trade is in terms of volume.
All this amazing functionality is abstracted out for our users. This means that as a user, you only need to select a token to trade, and a token to trade for. Axial's smart contracts will find the best way to execute your trade based on the liquidity available, and get you the best results possible.
Adding Liquidity to Axial
Providing liquidity on Axial will net you the transaction fees from users trading in any given pool, in addition to any AXIAL token incentives allocated to that pool. Here are some aspects of providing liquidity on Axial to keep in mind:
- You may deposit or withdraw any combination of tokens you'd like. This means that in a pool of 4 tokens, you can deposit all 4 in equal amounts, or just 1 at any time.
- Depositing or withdrawing a token that helps balance the pool gives you a discount. The opposite is true for transactions that further imbalance the pool.
- You will receive a receipt token when depositing liquidity. This means that if you deposit some tokens into the AS4D vault, for example, you will receive AS4D tokens in return. These tokens represent your underlying deposit, and are used to withdraw your funds at any time.
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