Canto DEX

In order to prevent the possibility of a predatory evolution toward rent-seeking behaviors, Canto’s decentralized exchange protocol:

• Cannot be upgraded

• Has no official interface

• Runs in perpetuity without the ability to implement fees

At launch, users can interact with the DEX contracts through Slingshot, a DEX aggregator platform.

Trading on Canto DEX

Like other DEXes, Canto uses an automated market maker (AMM) to price assets. The AMM derives liquidity for trading pairs from user-supplied pools of assets called liquidity pools.

At launch, Canto supports two types of liquidity pools:

• Full range liquidity pools using a xy=k formula (constant product)

• Concentrated liquidity pools using a yx^3 + xy^3 = k formula, to deepen liquidity for stablecoins and other units of account such as Note

Providing Liquidity

In order to participate in Canto liquidity mining, users are able to provide liquidity to the Canto DEX at app.canto.io/lp.

Users providing liquidity receive LP tokens that can be supplied in the Canto Lending Market to earn incentives.

Incentivized Pools

At present, Canto has 5 incentivized pools:

• USDC/NOTE Concentrated Liquidity Pool (yx^3 + xy^3 = k)

• USDT/NOTE Concentrated Liquidity Pool (yx^3 + xy^3 = k)

• NOTE/CANTO Full Range Liquidity (`xy = k`)

• CANTO/ETH Full Range Liquidity (xy = k)

• CANTO/ATOM Full Range Liquidity (xy = k)