More than just Crypto

Using a regulated decentralized exchange has several advantages, including lower fees (compared to traditional brokerages), better accessibility with increased choice and variety of assets, round-the-clock trading, allowing for better reactivity and portfolio management, and increased security with reduced risk.

To access SOMAswap, you will need to complete the onboarding process. This covers some key steps, including a full KYC (Know Your Customer)/KYB (Know Your Business) check, a comprehensive AFT (anti-financing of terrorism), AML (anti-money laundering) and AFT (anti-front running) background check, and a whitelisting process to determine the level of trading privileges based on your personal information.

You'll be able to view the full list of available digital assets and their prices within the SOMA platform interface.

A decentralized exchange is a peer to peer exchange that utilizes a set of smart contracts to establish the prices of various cryptocurrencies & digital assets against each other algorithmically.

An automated market maker (AMM) is a popular decentralized exchange (DEX) protocol that utilizes a pricing algorithm to determine the price of an asset instead of using an order book like traditional exchanges. The algorithm used by each AMM varies from protocol to protocol and is largely dependent on the specific use cases targeted by each protocol. 

Although each mathematical formula used by each protocol may differ, they all share the same underlying function, which is to determine an asset's price algorithmically. AMMs decentralize the traditional market-making process and make it so that anyone can create a market on a blockchain and/or provide liquidity.

AMMs work similarly to traditional order books in that there are trading pairs for traders or liquidity providers to choose from. The main difference is that with AMMs, a counterparty (opposing trader) is not necessary to complete a trade. Instead, the system utilizes smart contracts to “make” markets. 

If typical exchanges are considered peer-to-peer (P2P) exchanges, AMMs can be thought of as peer-to-contract (P2C) exchanges. Because there are no order books, AMMs have historically only offered market orders. Recently, thanks to DEX technology, traders can place other types of orders, such as limit orders, for certain token pairs. 

Automated market makers have evolved to become the backbone of the DeFi ecosystem as they allow decentralized markets to function absent centralized order books and market makers. 

In addition to decentralizing the market-making process, AMMs allow anyone with an internet connection, to access crypto markets without needing KYC checks or self-identification.