Aldrin is a DEX built on Solana that seeks to simplify the process of digital asset trading for both beginners and advanced traders.
A lot of DEXs in the space face problems when it comes to facilitating trades in an instantaneous manner without spending overly high gas fees to get first in line. Aldrin, developed on one of the fastest blockchain networks today, is working on establishing a viable alternative for this market.
What is Aldrin?
Aldrin is a decentralized cryptocurrency exchange (DEX) built on the Solana network that seeks to simplify the process of digital asset trading for both beginners and advanced traders alike. In the coming days, Aldrin will also launch its centralized exchange in order to meet the needs of a variety of traders.
There are over 160 token pairs that can already be traded on the exchange. The dashboard for traders is also pretty comprehensive and informative, with an option for users to review important token data before they conduct their trades. Aldrin makes it easier for traders to find the website of a token, its trade analytics, and other pertinent data about it.
The wallets that can be used in order to start using the platform can be the Aldrin and Solana wallets like Phantom and Solflare, as well as Ledger, MathWallet, and Coin98, among others.
Automated Market Maker
For Aldrin’s DEX, the liquidity needed to facilitate the trades does not come from a centralized broker or entity. This means that the assets traded on the platform are supported by liquidity pools, or an accumulated deposit of cryptocurrencies from the network’s users.
Through automated market makers, Aldrin offers a platform for users to trade without the need for any third-party involvement in finalizing trading calls. It also provides users with an additional opportunity to earn from the network by way of contributing to liquidity pools to gain more tokens as a reward.
But from a more technical standpoint, AMM’s like Aldrin’s are supported by smart contracts that perform instant token swaps against available liquidity pools. In these facilities, users can choose which trading pairs to supply assets to. This removes the need for any middlemen or exchange operators to ensure that there will be enough liquidity to support the trades on the platform.
As of now, the accessibility features on the platform include spot trading and automated rebalancing. Spot trading lets users purchase and sell multiple cryptocurrencies almost instantaneously. Automated rebalancing, on the other hand, allows the user to manage their portfolio in such a way that it maintains the desired allocation of the trader.
Currently in close beta are features such as futures trading and smart orders. Smart trading on Aldrin DEX will also be enabled by the 4th quarter of 2021. They are currently working in partnership with Binance as they develop their centralized exchange platform.
Smart order will give users the ability to automate their trades based on a defined parameter of risk and profit. Here, the user will be able to set their own trade entry points, stop loss, and take profit levels.
Futures trading allows users to engage in leveraged trading, giving them the capacity to earn more profit from their assets. With futures, the user can expand the size of their positions and execute larger trades to amplify their rewards. This is still offered under closed beta but will be rolled out to more users in the months ahead.
Hedging, a risk management option, can be done easily on the platform. This is often taken by traders who want to minimize or limit their risk of loss caused by market fluctuations. On Aldrin, you can do this by simply opening a separate hedging account where you can open hedge positions. This process abstracts the whole strategy of opening new positions as well as monitoring them.
With Aldrin aiming at facilitating instantaneous trades, Solana is the perfect fit. The network is supported by more than 570 global validators, making it capable of processing transactions securely, quickly, and without the risk of censorship. Solana is also a quickly popularizing technology set on attracting huge adoption with only an average transaction fee of $0.00025.
In addition, Solana is capable of facilitating 50,000 transactions per second. With this transaction throughput, Aldrin’s DEX can be completely capable of offering instantaneous atomic swaps.
RIN token is the platform’s native, utility token. It is used to back the exchange’s rewards system and incentivize user participation in the protocol’s activities. RIN can also be utilized by the users in order to take part in the project’s governance mechanisms, allowing them to vote on important protocol parameters in the future.
In the future, RIN will implement its Solana-based Automated Market Maker in order to enable faster trade facilitation. This will also open the opportunity for users to contribute their assets to support the liquidity of the exchange while earning rewards at the same time.
There will also be a buyback and burn feature once the centralized exchange rolls out. This means that the RIN tokens paid in transaction fees will be bought back and burned from the market. This is designed in order to make the price of the token more sustainable in the future.
RIN can be staked by users in order to earn more RIN tokens in return. They will be rewarded proportionally, based on the amount of fees generated by the platform from user activities. This is on top of the share of the stakers on the distribution allocation of all RIN tokens.
Decentralized cryptocurrency trading platforms offer multiple opportunities for users to buy and sell different digital assets. However, there are exchanges that do not attract much users because of how expensive their gas fees are, such as those that are based on highly congested blockchain networks. Aldrin offers an alternative, a Solana-based DEX which can process numerous transactions instantaneously with very affordable fees.
Aldrin is still currently under development but it already has a lot of assets on its listing. There are more features to expect in the coming months. The project is off to a good start, with functions in place to make it easier for beginners and advanced traders alike to dip their hands in the cryptocurrency market.