1. Swapping Tokens #
Alpaca DEX lets anyone instantly exchange one token for another within liquidity pools on Keeta.
When you submit a swap:
- You choose a trading pair (e.g.
KTA / PACA). - You enter the amount you want to swap.
- Alpaca’s automated engine calculates how much of the target token you’ll receive.
- The transaction is executed, balances are updated, and the trade is recorded on-chain.
No registration or KYC is required — trading happens directly against the shared liquidity pool rather than through a centralized intermediary.
2. How Prices Are Determined #
We use an Automated Market Maker (AMM) model based on the constant-product formula: x×y=kx \times y = kx×y=k
Where:
- x = the reserve of the base token
- y = the reserve of the paired token
- k = a constant that remains unchanged after every trade
When someone swaps tokens, the reserves in the pool shift, but k stays constant.
This mathematical relationship automatically determines the new price after each trade.
🧮 Example #
If a pool starts with 100 KTA and 200 PACA tokens: 100×200=20,000100 \times 200 = 20,000100×200=20,000
If you buy KTA by adding PACA, the y side increases and x decreases.
To keep k constant, the price of KTA rises — this is price impact.
💡 Price Impact #
Price impact measures how much the trade size moves the pool price.
Smaller pools or larger trades cause higher impact.
Alpaca displays this before confirming a swap so you always know your expected rate.
3. Execution Process #
Currently, trades are processed through our automated engine, which:
- Matches swap requests
- Calculates output amounts using the AMM formula
- Updates pool reserves
- Records every trade and pool update transparently on-chain
Although the execution logic itself runs off-chain for performance, all resulting data (balances, pool states, LP token mints/burns, trade events) is published to Keeta’s distributed ledger, ensuring public verifiability and data integrity.
The eexeuction log will shift to on-chain smart contracts as soon as Keeta’s technology matures — blending speed today with decentralization tomorrow.
4. The Road Toward Full On-Chain Execution #
Alpaca is designed to evolve alongside Keeta.
In the near future, as Keeta’s smart contract layer becomes available, trade and liquidity logic will migrate to fully decentralized on-chain execution — meaning:
- Swaps, liquidity deposits, and LP token minting will be governed directly by smart contracts.
- Execution and settlement will no longer rely on Alpaca’s off-chain engine.
- Transparency, composability, and user control will reach full decentralization.
This transition ensures that Alpaca maintains speed and efficiency today, while being ready for full autonomy tomorrow.
