Key Updates to Pi Network's DEX and AMM Explained
Explore significant enhancements to Pi Network's decentralized exchange and automated market maker designed for improved usability and better token evaluations.
Latest Updates on the Pi Network
The Core Team behind the well-known Pi Network has unveiled crucial updates for both its testnet decentralized exchange (DEX) and the Automated Market Maker (AMM).
The enhancements focus on usability, liquidity organization, and enabling users (known as Pioneers) to better assess token details.
Improvements to DEX and AMM
According to a statement from the team, one of the most notable changes is the transition towards Pi-denominated liquidity pairs. This move establishes the native token as the primary asset on the Testnet exchange, reflecting liquidity models from other established DeFi ecosystems. Concentrating liquidity around a leading asset is expected to stabilize prices and reduce fragmentation.
The updates aim to offer Pioneers lower price volatility, minimized slippage during transactions, enhanced resistance to market manipulation, and improved price discovery. It’s important to note that these improvements do not generate new liquidity; instead, they enhance the efficiency of existing liquidity as participation increases.
The team also introduced a revamped interface for the DEX and AMM, designed to simplify navigation and facilitate onboarding of non-technical users into DeFi via hands-on experiences with Test-Pi.
Domain Verification and Greater Transparency
Additionally, mandatory domain verification has been introduced for token issuers, requiring them to link their coins to verified domains. This initiative helps Pioneers determine whether a token is genuinely connected to a specific project or developer, although it does not assure trustworthiness.
New Token Ranking System
In tandem with these updates, the Core Team has also begun testing a new liquidity-based token ranking system to replace the traditional Market Cap metric, aiming to combat the effects of artificial scarcity and low circulating supply, thus providing a more accurate reflection of capital commitments across token pools.
