Spot Trading (AMM)

The spot market enables 24/7 fractional trading of tokenized luxury assets through advanced concentrated liquidity pools.

Overview

Trade fractions of rare luxury assets instantly on-chain with:

• Low Fees: 0.3% per swap
• Deep Liquidity: Professional market making
• No Minimums: Start with as little as $1
• Instant Settlement: On-chain execution

How It Works

AMM Integration

Our spot market uses advanced AMM technology for maximum capital efficiency:

Pool Configuration:
- Token Pair: RWA_TOKEN / USDC
- Fee Tier: 0.3% (30 bps)
- Tick Spacing: Concentrated liquidity
- Hooks: Custom pricing oracle integration

Trading Flow

Buy Flow:

User → Deposit USDC → Liquidity Pool → Receive RWA Tokens

Sell Flow:

User → Deposit RWA Tokens → Liquidity Pool → Receive USDC

Market Makers

Professional Pricing

Our market maker provides:

• Real-time quotes based on dealer markets
• Tight spreads for better execution
• Deep liquidity to minimize slippage
• Challenge mechanism for disputed prices

Liquidity Provision

Anyone can provide liquidity and earn fees:

Conservative Strategy:

• Wide price range (±20%)
• Lower impermanent loss risk
• Steady fee income

Aggressive Strategy:

• Narrow price range (±5%)
• Higher capital efficiency
• More active management needed

Trading Features

Limit Orders

Place limit orders to buy/sell at specific prices:

createLimitOrder({
  tokenIn: USDC,
  tokenOut: FP_JOURNE_TOKEN,
  amountIn: 1500,
  minAmountOut: 0.95, // $1,579 per token
  expiry: timestamp + 7days
});

Stop Loss

Protect against downside with automatic sells:

createStopLoss({
  token: FP_JOURNE_TOKEN,
  amount: 10,
  triggerPrice: 1400, // Sell if price drops to $1,400
});

Market Orders

Execute immediately at current price:

swapTokens({
  tokenIn: USDC,
  tokenOut: FP_JOURNE_TOKEN,
  amountIn: 15000, // Buy ~10 tokens
  slippage: 0.5%, // Max 0.5% slippage
});

Pricing Oracle

Multi-Source Pricing

Our oracle aggregates prices from:

1. Professional Dealers (Primary)

   • Luxury asset marketplaces
   • Auction house results
   • Private dealer networks

2. On-chain Market (Secondary)

   • AMM pool price
   • Recent trade history
   • Volume-weighted average

3. Perp Market Signals (Sentiment)

   • Funding rates
   • Open interest
   • Liquidation prices

Challenge Mechanism

If you believe the oracle price is wrong:

1. Submit Challenge with evidence (dealer quotes, recent sales)
2. Stake USDC as bond (refunded if challenge succeeds)
3. Committee Review within 24 hours
4. Price Adjustment or challenge rejection

Trading Scenarios

Scenario 1: Fractional Purchase

Goal: Own part of a luxury asset

Step 1: Check current price
- RWA_TOKEN: $1,550 per token

Step 2: Determine budget
- You have: $15,000 USDC
- Can buy: ~9.67 tokens (fractional ownership)

Step 3: Execute trade
- Swap 15,000 USDC → 9.67 RWA_TOKEN
- Pay 0.3% fee: $45
- Net cost: $15,045

Step 4: Options
- Hold tokens for appreciation
- Stake in vault for yield
- Sell later at higher price

Scenario 2: Arbitrage Opportunity

Setup: Price divergence between spot and perp markets

Spot Market: $1,500 per token
Perp Market: $1,550 (long premium)

Strategy:
1. Buy 100 tokens on spot for $150,000
2. Short 1 watch on perp at $155,000
3. Collect funding rate from longs
4. Close positions when prices converge

Scenario 3: Portfolio Rebalancing

Goal: Switch from one asset category to another

Current: 50 RWA_TOKEN_A @ $1,500 = $75,000
Target: RWA_TOKEN_B @ $3,000

Step 1: Sell Token A
- Receive: ~$74,775 (after 0.3% fee)

Step 2: Buy Token B  
- Purchase: ~24.9 RWA_TOKEN_B

Result: Diversified into different asset in minutes

Liquidity Pools

Pool Statistics

Pool	TVL	24h Volume	APR	Fee Tier
Tier 1 RWA/USDC	$2.5M	$150k	8.5%	0.3%
Tier 2 RWA/USDC	$5M	$300k	12%	0.3%
Tier 3 RWA/USDC	$8M	$500k	15%	0.3%

Becoming an LP

Provide liquidity to earn trading fees:

Benefits:

• Earn 0.3% of all trades
• Potential for token rewards
• Help create deeper markets

Risks:

• Impermanent loss if prices diverge
• Capital requirements
• Active management needed

How to Start:

1. Deposit equal values of RWA tokens and USDC
2. Receive LP tokens representing your share
3. Earn fees proportional to your pool share
4. Withdraw anytime (subject to price impact)

Trading Fees

Action	Fee	Recipient
Spot Swap	0.3%	Liquidity Providers (70%) + Protocol (30%)
Limit Order	0.3%	Liquidity Providers + Protocol
Cancel Order	Gas only	Network validators

Risk Management

For Traders

Volatility Risk

• Luxury asset prices can fluctuate 10-30% annually
• Use stop losses to protect against downside
• Consider dollar-cost averaging for larger positions

Liquidity Risk

• Lower liquidity = higher slippage
• Trade during active hours for better prices
• Check pool depth before large trades

Smart Contract Risk

• Our AMM infrastructure is battle-tested but not risk-free
• Never trade more than you can afford to lose
• See Security

Next Steps

• Start Trading - Detailed trading tutorial
• Provide Liquidity: Learn how to become an LP and earn fees
• Vault Staking - Earn additional yield