Liquidity Providers

Traders are the true liquidity providers

Liquidity providers between AMMs and Standard Exchange are fundamentally different. While liquidity providers are passive ones who sit on their money in each pair of AMM now being unprofitable with active JIT liquidity bots, Standard Exchange liquidity providers are the active traders who match the orders to the market price where people agree to be fair.

AMMsUniswapXStandard Exchange

Liquidity Providers

Passive LP Depositors

Active Traders

Active Traders

Required assets to provide liquidity

Base and quote of pair

Base or quote of pair

Base or quote of pair

Trading Assets With


Dutch auction from 1700s(?)

Making Order / Taking Order


Illegalized Staking or Airdrop


Action based

Revenue Sharing

Only liquidity providers


All registered traders


x*y=k, x+y=k, or constant equation for one liquidity distribution

Dutch Auction from 1700s(?)

Greedy Algorithm


Fully on-chain

CEX-like dark pool,

Off-chain settlement

Fully on-chain

Trader Points

In Standard Exchange, trader performance is quantified using Trader Points (TP). These points are assigned to traders based on the volume of each order they execute, which is recorded over an era, a 30-day period in approximate block finalization time. The accumulation of Trader Points enables traders to access various benefits within the Standard Exchange ecosystem, such as redeeming fees, receiving fee discounts, and participating in governance processes. By measuring and utilizing Trader Points, Standard Exchange establishes a transparent and incentivizing framework that rewards traders for their trading activity and encourages active participation in the platform.

TPvolume in unit of account (USDT,USDC,CBDCs,etc)TP ≒ {volume \ in\ unit \ of \ account\ (USDT,USDC,CBDCs, etc)}

Trader Impact

In Standard Exchange, trader performance is assessed by comparing their contributing points to the total points, providing a relative measure of their performance in relation to other traders. This evaluation framework allows for a clear understanding of a trader's performance within the Standard Exchange ecosystem. Moreover, Standard Exchange introduces the concept of Trader Impact (TI), which signifies the level of influence a trader holds within the Standard Exchange economy. The TI metric serves as an indicator of how influential a trader is in shaping the dynamics of the Standard Exchange marketplace. By utilizing these evaluation methods, Standard Exchange fosters transparency, fairness, and a deeper comprehension of a trader's contributions and impact within the platform's economy.

TI(%)=(LiquidityPoints/TotalPoints)100TI(\%) = ({Liquidity Points} / {Total Points})*100

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