About
Learn about Fixed Ratio Trading Protocol
Fixed Ratio Trading Protocol
Revolutionary fixed-ratio token trading infrastructure for Solana - enabling predictable exchanges, micro-denominations, token migrations, and precise liquidity provision at any price point.
Important Notice: Conversions may diverge from market prices and can deplete one side; users accept imbalance risk.
🌟 Revolutionary Use Cases
Fixed Ratio Trading enables innovative applications across DeFi, governance, and enterprise markets.
💰 Micro-Denomination Trading
Transform expensive tokens into accessible micro-units for better user psychology:
- 100,000 Satoshis instead of 0.001 BTC
- 1,000,000 Wei-ETH instead of 0.001 ETH
- 50,000 Micro-SOL instead of 0.05 SOL
🏛️ DAO-Value Token Linkage
Revolutionary governance innovation linking DAO tokens to established value tokens:
- Liquid Governance: Vote without losing exposure to preferred assets
- Bidirectional Value: DAO success increases value token price and vice versa
- Community Bridging: Unite separate token communities for mutual benefit
🔄 Token Migration & Upgrades
Seamlessly migrate users from old tokens to new versions with guaranteed rates:
- Protocol Upgrades with predictable migration pricing
- Rebranding Events with transparent token swaps
- Chain Migrations with locked conversion rates
🎯 Target Price Liquidity
Set exact prices where you're willing to trade your assets:
- "I'll sell my 1 BTC at exactly $200,000" - Guaranteed execution
- "I want to buy SOL at exactly $100" - No slippage, no timing required
- Strategic Positioning - Governance may enable trading fees in the future; currently 0%
🏦 Institutional Fixed-Rate Trading
Enterprise-grade trading infrastructure with guaranteed rates:
- Treasury Management with predictable exchange rates
- Payroll Systems paying employees in different tokens at fixed rates
- B2B Trading with contractual token exchange rates
- Compliance-Ready audit trails and reporting
🎯 Why Fixed Ratio Trading?
| Feature | Traditional AMMs | Fixed Ratio Trading |
|---|---|---|
| Price Slippage | ❌ Price slippage on large trades | ✅ Zero slippage - at the fixed ratio, subject to available liquidity |
| Pricing Predictability | ❌ Unpredictable pricing | ✅ Fixed price - you set the ratio; execution depends on liquidity/limits |
| Complexity | ❌ Complex curve calculations | ✅ Simple math - direct ratio multiplication |
| Impermanent Loss | ❌ Impermanent loss risk | ✅ Predictable outcomes - fixed ratios only |
| MEV Protection | ❌ MEV extraction potential | ✅ Reduced MEV surface - no price curves; ordering/arbitrage still possible |
💰 Fee Structure & Economics
🏛️ Governance-Controlled Fee Architecture
The protocol implements a sophisticated dual-fee system designed for decentralized governance transition:
1. Contract Fees (Fixed SOL Amounts) ⚡
Operational costs paid in Solana for transaction processing:
| Operation | Fee Amount | Purpose |
|---|---|---|
| Pool Creation | 1.15 SOL | One-time setup, PDA creation, anti-spam protection |
| Liquidity Operations | 0.013 SOL | Deposits/withdrawals processing |
| Token Swaps | 0.0002715 SOL | Swap execution costs |
📧 Fee Adjustment Requests: Initial fees are set higher for launch sustainability. For fee reduction requests, contact info@davincicodes.net with "FRT" in the subject line for faster processing.
2. Pool Fees (Currently 0%, Governance-Controlled) 📊
Trading fees configurable by governance protocols:
- Current Rate: 0% (Free trading to bootstrap liquidity)
- Maximum Rate: 0.5% (Hard-coded protocol limit)
- Control: System authority only (prepared for governance takeover)
- Revenue Flow: Treasury PDAs (not individual pool owners)
🏗️ Architecture & Smart Contract Design
🔐 Intelligent Pool Management
FLEXIBLE ARCHITECTURE: Our smart contract supports multiple pools per token pair with different ratios to serve various use cases:
- ✅ Multiple SOL/USDC pools with different ratios (e.g., 1:80, 1:100, 1:120 for different price targets)
- ✅ Diverse trading strategies - Create pools at your preferred exchange rates
- ✅ Price tier liquidity - Different pools for different market conditions
- ✅ Use case specialization - Migration pools, micro-denomination pools, target-price pools
🎯 Enhanced Token Normalization
Prevents economic duplicates through advanced algorithms:
// These create the SAME pool (economic equivalents):
Pool A: 1 SOL = 100 USDC
Pool B: 100 USDC = 1 SOL
Pool C: 10 SOL = 1000 USDC
// Our system normalizes to ONE canonical pool💎 LP Token Innovation
Dual LP Token System - Each side of the pool gets separate LP tokens:
- LP-A Tokens: Represent claims on Token A side of pool
- LP-B Tokens: Represent claims on Token B side of pool
- Perfect asymmetric deposits: Deposit only the token you have
- Precise withdrawals: Withdraw exactly the token you want
- Future Enhancement: Upcoming versions will allow users to withdraw from both sides of the pool using either LP-A or LP-B tokens for maximum flexibility
🛡️ Security & Governance
🔒 Multi-Layer Security Architecture
System-Wide Controls
- Emergency Pause: Instant protocol freeze for critical issues
- Upgrade Authority: Controlled by governance (future) or system authority (current)
- Treasury Protection: All fee revenues flow to governance-controlled PDAs
Pool-Level Security
- Individual Pool Pause: Granular control over problematic pools
- Liquidity Pause: Temporarily stop deposits/withdrawals only
- Swap Pause: Temporarily stop trading only
- Owner Controls: Pool creators can pause their own pools
Economic Security
- Canonical Pools: One canonical pool per normalized ratio; duplicates are merged
- Rent Protection: All accounts maintain Solana rent exemption
- PDA Validation: Complete program-derived address verification
- Input Sanitization: Comprehensive parameter validation
🔍 Open Source & Transparency
📖 Fully Open Source Protocol
Fixed Ratio Trading is committed to transparency and community trust. Our entire smart contract codebase is open source and available for public review, audit, and contribution.
- 🔗 GitHub Repository: https://github.com/Fixed-Asset-Ratio-Trading
- ✅ 100% Transparent: Every line of code is publicly viewable
- 🔍 Community Auditable: Anyone can verify our claims and security measures
- 🤝 Open Contributions: Community improvements and bug reports welcome
🤖 AI-Powered Verification
Take advantage of modern AI tools to independently verify our smart contract's safety, functionality, and claims. You can audit our code using any AI system - here are some recommended approaches:
🎯 Using Claude AI for Auditing
Example verification workflow:
- Visit Claude.ai by Anthropic
- Copy our smart contract code from GitHub
- Ask Claude: "Analyze this Solana smart contract for security vulnerabilities and verify it implements fixed-ratio trading correctly"
- Request specific checks: "Verify there's no hidden fees, backdoors, or rug-pull mechanisms"
- Validate our claims: "Confirm this implements zero-slippage trading at fixed ratios"
🛠️ Other AI Audit Tools
Alternative AI systems for verification:
- ChatGPT-4: Upload contract files for comprehensive security analysis
- GitHub Copilot: Review code patterns and potential vulnerabilities
- Gemini Advanced: Cross-reference with best practices and known exploits
- Cursor AI: Deep code analysis with Solana-specific knowledge
🛡️ What to Verify
When auditing our smart contract with AI or manually, focus on these critical aspects:
| Verification Area | What to Check | Expected Result |
|---|---|---|
| Fixed Ratios | Math calculations maintain exact ratios | ✅ No slippage, precise calculations |
| Fee Structure | All fees are transparent and as documented | ✅ Fees match documentation exactly |
| Admin Powers | No hidden admin functions or rug-pull mechanisms | ✅ Limited, transparent admin controls |
| Fund Security | User funds are secure and withdrawable | ✅ Users maintain full control |
| PDA Validation | Proper Program Derived Address usage | ✅ Secure PDA implementation |
💡 Pro Tip: When using AI for auditing, be specific in your questions. Ask about edge cases, potential attack vectors, and mathematical precision. The more detailed your queries, the more thorough the audit.
📊 Benefits & Competitive Advantages
🎯 For Traders
- ✅ Zero Slippage: Always get exact ratio, regardless of trade size
- ✅ Predictable Pricing: No complex curves or surprise prices
- ✅ Micro Trading: Trade expensive tokens in small, manageable units
- ✅ Target Prices: Set exact prices where you want to trade
💼 For Projects
- ✅ Token Migrations: Seamless upgrades with guaranteed rates
- ✅ Liquidity Control: Provide liquidity at your preferred rates
- ✅ Treasury Management: Corporate trading with predictable exchange rates
- ✅ User Psychology: Give users "whole number" token ownership feeling
🏗️ For Developers
- ✅ Simple Integration: No complex AMM math or curve calculations
- ✅ Predictable Gas: Fixed computational costs, no dynamic calculations
- ✅ MEV Resistant: Fixed ratios eliminate many MEV attack vectors
- ✅ Composability: Perfect building block for other DeFi protocols
🌍 For Ecosystem
- ✅ Liquidity Concentration: Anti-fragmentation ensures maximum efficiency
- ✅ Price Discovery: Clear, unambiguous pricing for every token pair
- ✅ Governance Ready: Built for community control from day one
- ✅ Sustainable Economics: Fee structure supports long-term development
💬 Support & Contact
Technical Support: support@davincicodes.net
Fee Reduction Requests: info@davincicodes.net (Subject: "FRT" for faster processing)
Governance Acceleration: info@davincicodes.net ($50,000 USD acceleration payment)
Public Updates: @davincij15 (Twitter/X)
⚠️ Important Disclaimers
🚨 ALPHA SOFTWARE: This protocol is under active development. Use at your own risk.
💼 NOT FINANCIAL ADVICE: This documentation is for educational purposes only. Consult financial advisors for investment decisions.
🔒 SECURITY NOTICE: While extensively tested, smart contracts carry inherent risks. Never invest more than you can afford to lose.
🌍 REGULATORY COMPLIANCE: Users are responsible for compliance with local laws and regulations regarding cryptocurrency trading.