Crypto
Fintech

Automated Market Maker on Algorand

ULAM LABS enhances Algorand with Pact: Experience rapid, secure trading and advanced liquidity solutions.

The challenge

### **Building a decentralized AMM protocol** o align with existing AMM models, we developed a protocol enabling asset swaps, participation in liquidity pools, and automated pricing algorithms based on supply and demand. ### **Facilitating liquidity pools** Ensuring a seamless experience on both the swap functionality and liquidity pools was paramount. It was essential to create an environment encouraging users to contribute assets, with real-time operations. ### **Ensuring Robust Security** Given the high stakes of security in AMMs, thorough audits by Runtime Verification and Kudelski Security were crucial to mitigate risks of exploits or bugs that could jeopardize user funds. ### **Native Integration with Algorand** Leveraging Algorand's fast, carbon-negative transactions was a key goal. Pact was designed to run natively on Algorand, supporting all its Standard Assets and compatible wallets.

What we delivered

ULAM LABS delivered a Minimum Viable Product within the stipulated launch date, laying a strong foundation for the future of the Pact protocol. · We acted as consultants for the core business team, navigating them through the complexities of building a decentralized Automated Market Maker (AMM) protocol.

Overview

Pact is a decentralized Automated Market Maker (AMM) protocol on the Algorand blockchain, designed to significantly boost liquidity within the ecosystem. As the technical partner of the Algorand Foundation, ULAM LABS spearheaded the complete technical execution of this project, from initial development to continuous enhancements.

Our collaboration focused on creating a robust, secure, and user-friendly platform that meets the dynamic needs of the Algorand community. By leveraging our expertise in blockchain technology and smart contracts, we have successfully established Pact as a key player in the decentralized finance (DeFi) space in Algorand.

Sector

Crypto / Fintech

Product type

Enhancing Algorand's Liquidity with Decentralized AMM

Timeline

October 2021 - August 2023

Background

Pact debuted on the Algorand mainnet in February 2022, significantly advancing the Algorand ecosystem. It expanded beyond the capabilities of the ecosystem’s initial AMM protocol, which only facilitated swaps for Algorand Standard Assets.

As the main technology provider, ULAM LABS worked closely with Pact’s core team to develop and continually enhance the technology from scratch, supporting ongoing platform maintenance.

This collaboration ensured that Pact remained at the forefront of innovation, consistently delivering new features and improvements to meet the evolving needs of its users.

Scope of Work

What we delivered

Backend

Frontend

DevOps

Smart Contracts

Backend

Frontend

Key features

Farming — In collaboration with the Algorand Foundation and partners, Pact enables additional token rewards for liquidity committed by users, fostering ongoing revenue generation from staking. This initiative supports long-term user engagement and platform growth.
Multi-Wallet Support — Compatible with several top Algorand wallets such as Pera, My Algo, Fireblocks, AlgoSigner, and Defly. This wide compatibility ensures that users can easily connect their preferred wallets and manage their assets seamlessly on the platform.
Interest earning on Liquidity Pools — Allows liquidity providers to earn fees and rewards by contributing to various pools. This feature incentivizes users to provide liquidity, enhancing the overall liquidity and stability of the platform.
User-Friendly Application — Designed with a mobile-first approach, Pact offers an intuitive interface, robust liquidity options, and competitive fees. The user-centric design makes it easy for both novice and experienced traders to navigate the platform and participate in DeFi activities.
Instant Settlements — Utilizes Algorand’s atomic swaps and fast transaction capabilities to facilitate nearly instant settlements, thereby enhancing platform security. This feature ensures that trades are executed swiftly and securely, reducing the risk of price slippage and other trading inefficiencies.
Decentralization — Ensures that funds are securely held in smart contracts on the Algorand blockchain, preventing any administrative control over user assets by the Pact or ULAM LABS teams. This decentralization enhances security and trust, as users retain full control over their assets.

Project timeline

May 2022

Launch

Launch of AMM and introduction of Stablepools

September 2022

Implementation of ZAP and router

Implementation of ZAP, enabling liquidity addition with a single asset. Router development for optimized price impact and fees through multi-pool swapping.

March 2023

Farms and Analytics

Deplyoment of Farms and Rollout of Advanced Analytics

June 2023

Algorand Integration

Integration of Algorand Foundation Governance participation with assets staked in Farms. Launch of Lendingpools.

As an investor, I have seen Ulam's work firsthand across multiple projects and highly recommend their team for anyone requiring blockchain development. They have demonstrated the ability to adapt across a range of different blockchain technologies and deliver high-quality products. The team is always professional and goes beyond just developing on technical specs offering valuable input and ideas resulting in more intuitive products.

Michael CottonLead Investor

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