Combining both CLMM and order book styles into a DEX that operates across both the Ergo and Cardano blockchains.
Spectrum Finance operates on a Concentrated Liquidity Market Maker, CLMM, algorithm that enables liquidity providers, LPs, to select a range in which their liquidity will be available, thus reducing their personal slippage risk.
Orders are executed off-chain by “Off-chain executors” and, for the sake of efficiency, orders are broken into two stages: Order creation and execution. Once an order is submitted it is executed off-chain by bots. Transactions are then validated by an on-chain validation script.
The Ecosystem “Agents”
There are 5 economic agents in the Spectrum system:
Earn miner fees, paid in native tokens, for processing transactions.
Provide a better UI and earn fees, paid in native token, that are charged to the user for each operation done via the UI that they host.
Earn fees, that are paid as native tokens, for executing orders in both CLMM and order book environments. The fees, and thus the off-chain executors rewards, differ for each method of exchange.
Provide liquidity and receive protocol fees, paid in tokens, accumulated in liquidity pools.
Use the DEX to swap tokens and pay fees on each trade.
Spectrum is currently live on the ERGO blockchain as an AMM style swap DEX. Order book functionality on ERGO is next, followed by the launch of an AMM style DEX on Cardano. The current roadmap will be finished with the release of order book trades on the Cardano blockchain.