▪️Origen Swap

Origen Swap

• Origen Swap provides users with the opportunity to trade and earn on a variety of networks, including Ethereum, Polygon, Binance Smart Chain (BSC), Avalanche, and Fantom. With Origen Swap, you can get the most competitive rates for your token swaps and increase your earnings from your token assets.

• As the first multi-chain Dynamic Market Maker in DeFi, Origen Swap serves as both a decentralized exchange (DEX) aggregator and a liquidity source with highly efficient liquidity pools that generate fees for liquidity providers. Unlike other static/fixed AMM/DEX and liquidity platforms in the market,Origen Swap is designed to optimize capital usage by aggregating liquidity for the best rates, maximizing capital efficiency, and responding to market conditions to optimize returns for liquidity providers.

• By utilizing the stableswap 2.0 model, Origen Vault users can swap stablecoins at incredibly efficient exchange rates with minimal slippage.

The swap price is defined by the rate of change in cash of asset x per change in cash of asset y. Defined as:

• As you may have noticed, the exchange rate between two tokens in a liquidity pool, such as token X and token Y, is determined by the coverage ratio of the pool, which is the ratio between the value of the tokens in the pool and the value of the assets that are used to back them up. This means that regardless of the number of tokens X and Y in the pool, the exchange rate remains constant as long as the coverage ratio remains unchanged.

• It's worth noting that this concept also applies to other tokens that are part of the same liquidity pool, such as the token ORIGEN, which can be used as collateral to provide liquidity for the other tokens in the pool. Therefore, the coverage ratio of the pool, which is calculated by adding up the value of all the tokens and assets in the pool, including ORIGEN, is the key factor that determines the exchange rate between any two tokens in the pool.

Assume $A$ = 0.05, $r_x$ = 80% and $r_y$ = 150%. We have:

If we reverse the direction, swap from token y to token x. We have:

Incentives for convergence of coverage ratio

• The Origen DeFi Vault platform provides incentives for liquidity providers to maintain a healthy coverage ratio between the tokens and assets in a liquidity pool, including the token ORIGEN. Specifically, the platform incentivizes swaps between tokens in the pool when their coverage ratios are converged, while penalizing swaps when the coverage ratios are divergent. This mechanism is designed to ensure the stability and solvency of the pool, and to prevent defaults of any of the tokens, including ORIGEN.