* What is the difference between a DEX exchange like EtherDelta and UniSwap like DEX?
The biggest issue with a DEX exchange like IDEX is un-availability of instant liquidity. Though all the exchange operations happen in a decentralized manner, the actual swap of tokens needed an order book structure ie. a Buyer matched with a seller and vice versa. This is a major limitation in the old-school DEX models.
Uniswap solved this issue by introducing Automatic Market Making ( AMM ). In this revolutionary model, anyone can supply liquidity to any crypto pairs. In return they earned a part of the trading fee and also were able to do yield farming on their returns. For the trader, they they were able to do instant trades.
* How is the constant product market maker achieved in this Uniswap clone?
One of the incredible formulas that hold the AMM till date in the constant product market maker model. This formula aims to main the constant K by inversely moving the price of the supplied tokens ie. X * Y = K. Based on how much tokens are taken out of the pool the other tokens price varies ( thus also helping in increasing and decreasing the price of a token based on market demand ). For example in a pool that has ETHER and USDT, when one token is posited to withdraw another from the pool, the constant is always maintained. In this Uniswap clone script, this formula will be present in a configurable file, that you can tweak if you feel that you have an improved version.
* Can the owner of this Uniswap clone earn a part of the Gas fee paid?
Gas fee is paid by the user for each and every transaction done. Everytime the user initiates an event( ex: swap, add liquidity, withdraw, Stake etc. ) the tagged wallet asks permission to deduct gas fee and done accordingly. Usually the gas fee is calculated based on the blockchain miner fee rates and distributed. But if you intend to add an extra layer of fee to be deducted and transferred to your wallet, it can be done in the smart contract.
* On what basis are Liquidity Pool ( LP ) tokens given for each crypto pair?
This is decided based on the conditions and allocation units written in the smart contract. This Uniswap clone will have a default value set. You can choose to change it.
* How are LP tokens created? Who creates them on what basis?
When liquidity is supplied for a new crypto pair, the smart contract creates a LP token for that pair. And as new investors keep adding liquidity to the pair, more of the respective LP tokens are generated and sent to the wallet of the user.
* Can this UniSwap clone script be used for cross chain swapping between two different blockchains?
Right now this Uniswap clone is made for on-chain swaps. You can choose to have any blockchain of your choice. We are currently working on an algorithm to enable multi-chain swaps as well. The model we are trying to replicate is that being followed in Bancor ie. Run a parallel chain and replicate the transaction that has happened across the chains. The difficulty here though will be to create wrapped tokens ( Ex: WETH, WBTC, BXRP etc. ) and maintain volatility stability. It will be launched as a new version and provided as an update.
* When does a Liquidity pool meet its maximum number of participants?
Whenever a new pool is created for a cryptocurrency pair, the first person is the 100% owner of the pool. As new investors join in, based on their contribution they take a share. Its like more the participants bigger the pie gets. As the owner of the Dex exchange, you can choose to close a pool upon reaching its maximum liquidity size. Or you can also sent in the smart contract the size of the pool.
* What is Slippage tolerance?
The nature of cryptocurrency is the volatility in its price. “Slippage tolerance’ is a feature present in this Uniswap clone script for users to configure. Based on the percentage set by the user the transaction will revert if the price changes unfavorably by more than the set value.
* What is Transaction deadline?
Based on the value set by the user, if a particular transaction does not happen within the time frame, it will revert.
* What is APR in this Uniswap clone script?
APR or Annual Percentage Rate is the amount of interest you will be owed for the LP tokens you stake. APY or the Annual Percentage Yield is the amount of interest your investment can earn in a year ( the LP tokens staked ).
* What is Multiplier?
It is the amount of reward each farm gets ( in terms of the exchange tokens Ex: UNI in Uniswap ). You can set in the smart contract the value as for ex: 1x, 2x, 40x etc. For example a 1X farm gets 1 token per block and a 40X farm gets 40 toksn per block created.
* Can token owners submit to create a pool for their token in my UniSwap clone?
Yes, in this Uniswap clone script you can accept applications from token owners to create a pool for their token. After validation you can create a pool for their tokens, so your users can stake the tokens and earn/ compound the yield.
* Is this also a PancakeSwap clone / Polkaswap clone / SushiSwap clone?
Yes. It can be used as a PancakeSwap clone, Polkadot clone, Sushiswap clone as well.