RogueX is a Blast native next-generation AMM designed to capitalize on underutilized assets in traditional AMM liquidity pools. It goes beyond standard spot trading by introducing perpetual trading within the same pool.
RogueX takes the concept of concentrated liquidity (LP-NFT) pioneered in Uniswap-v3 and extends it to create a decentralized exchange that leverages these untapped reserves. In this way, RogueX provides users with an enhanced trading experience, reduced slippage, and increased capital efficiency.
By actively utilizing reserve funds, RogueX increases liquidity, which ultimately provides traders with more favorable trading conditions. At the same time, LPs benefit from increased return potential.
RogueX smart contracts actively monitor the price movement of a trading pair. When a user initiates a trade that falls within a certain price tick, the RogueX system detects this and allocates a portion of the reserve funds to that tick. This allocation ensures that the most relevant liquidity is readily available to execute trades at competitive prices.
Trading fees generated from trades executed in a particular reserved tick range are allocated proportionally to liquidity providers who have placed their assets in that tick range. LPs that strategically place their assets in high-demand price bands receive a larger share of trading fees. This incentivizes LPs to concentrate liquidity where it is most needed, improving trading conditions for users.
When traders make profits or incur losses within a particular tick, the corresponding LPs share proportionally in those profits or losses. This creates a direct correlation between LP performance and trading activity in their chosen price ranges.
RogueX continually adjusts the allocation of reserve funds, transaction fees and P&Ls based on changing demand and market conditions.
When a user adds liquidity to a position, the initial position value (IPV) and position profit and loss (PPnl) are recorded based on the amount of liquidity provided and the accumulated profit and loss of the assets in the pool. A positive PPnl indicates that the liquidity position is profitable, which may incentivize the LP to continue to provide liquidity for the position. A negative PPnl reflects incurred losses, which may encourage LPs to reconsider their positions or risk management strategies.
