> For the complete documentation index, see [llms.txt](https://chain-dimension.gitbook.io/dimensionchain/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://chain-dimension.gitbook.io/dimensionchain/ecological-blueprint/defi-ecosystem.md).

# DEFI Ecosystem

Defi decentralized finance is an important part of Dimension ecology, DimensionChain Defi mainly includes swap, DEX two parts.

 

**- Dimension Swap**

While ordinary exchanges have the concept of limit orders, and general market makers providing liquidity set prices, in Dimension Swap, a unique AMA mechanism is implemented where market makers only need to provide funds and the rest can be worked out through the mechanism. In Dimension Swap, all users can become market makers, they use their own funds and subsequently receive a share of the trading fees based on the proportion of their deposited assets to the pool.

 

Dimension Swap: Highly Exciting and Efficient AMM Protocol with Slippage Capture Support

Dimension Swap uses a "constant product market maker model", i.e. x\*y=k, which is a type of automated market maker (AMM) model. At the same time, Dimension Swap improves the design of AMM in terms of slippage capture and can increase revenue for liquidity providers.

In Dimension Swap, the liquidity provider can capture profits that would otherwise be captured by the arbitrageur through a virtual trading curve. In the case of spatial arbitrage, AMM collects 50% of the slippage from the arbitrage trader. This 50% will accumulate in the AMM liquidity pool and be shared by the liquidity provider. The slippage capture feature can spread liquidity up to \~200% compared to DEX's trading commission revenue.

 

**- DEX**

DimensionDEX is a decentralized exchange built on DimensionChain to facilitate automatic exchange transactions between digital assets. With the digital identity system, users do not need the cumbersome and insecure aspects of centralized exchanges such as registration, identity verification and withdrawal restrictions; they can simply create a Dimension digital identity for one-click operation, and DimensionDEX has an automatic market-making model to calculate transaction prices.


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