[DOC] Automatic market maker feature Requirements document

[TokenLife]

Type of Proposal

• Feature Request (e.g. functionality)

• Economic Model

• Underlying Technology (e.g. performance)

• Application Development

• Others

Background

Nowadays the market was crazy for DeFi , cause Ethereum bring AMM(automatic market maker) as a basic service for DeFi ,that make the DeFi can be combined as a new service.

However, the AMM feature is very important for the on-chain liquidity. I noticed that KuChain / Kratos refactor the assets moudle in order to implement multi asset.

Describe The Proposal (No more than 50 words)

More liquidity is More possible for the asset issuer and KuChain ecosystem.

Business Model (Optional for underlying technology)

As we can see ,the Uniswap or Balancer have a huge growth in the past of this year.

If KuChain want to serve the asset issuer , implement the AMM on-chain is necessary and profitable.

• Get more gas and fee for the validator

• Provid the on-chain liquidity for the user, means more users.

• Long tail price discovery for the issuer,means more issuers.

• Price feed and Oracle for other on-chain business, more developer.

Implementation Steps (Optional for economic model)

All we need is create a moudle called AMM ,and implement the Uniswap protocol, seems that is easyest way to implement AMM.

The AMM moudle need to interact with assets and accounts moudle, and need new type of msg for the AMM logic:

• NewSwapPoolMsg: for new swap pool with two token,eg kcs/xxx

• AddLiquidityMsg: user can add liquidity for the pool

• WithdrawLiquidityMsg

• SwapMsg

Expected Outcome
When the asset issuer create a asset XXX in KuChain , he can use some KCS and XXX coin to init a swap pool , then the XXX token holder could swap the XXX token with KCS

Timetable (Optional)

Estimate the timetable of your plan.

Implementation Steps	Time Consuming
step 1	Module develop
step 2	Integrate with assets and accounts moudle
step 3	Test and verify
Total duration	two weeks

Additional Context (Optional)
NA

Contact Information

[email protected]