Microchain

Launched on 5 November 2024, Microchain is an automated market maker (AMM) operating on the Fuel Network. It enables on-chain trading through liquidity pools, allowing users to swap tokens without a centralized order book.

The platform currently supports two pool types: constant product pools and stable swap pools. Constant product pools follow the standard AMM formula, providing liquidity for volatile asset pairs. Stable swap pools use a curve optimized for assets with closely correlated prices, such as stablecoins, to reduce slippage.

Microchain is in the process of adding concentrated liquidity, which will allow liquidity providers to place capital within specific price ranges rather than across the full curve. This is intended to improve capital efficiency and enable more precise liquidity strategies. The roadmap also includes integrating ve(3,3)-style incentive mechanisms, designed to align rewards between liquidity providers, token holders, and governance participants through vote-escrowed token staking and emissions allocation.

A notable feature of Microchain is its focus on low-latency transaction processing. Under certain network and pool conditions, swaps can be confirmed in as little as 100 milliseconds. This performance is supported by the Fuel Network’s architecture and the platform’s optimizations, though actual execution times vary depending on network activity, wallet performance, and liquidity depth.

Liquidity provision is permissionless. Any user can deposit supported token pairs into a pool and earn a share of the trading fees generated, distributed in real time. Liquidity can be added or removed without centralized approval.

Microchain takes security seriously and has undergone thorough third-party audits to ensure the reliability and safety of its contracts. Halborn Audit Halborn has conducted a comprehensive review of both the core contract and periphery scripts. OtterSec has successfully audited the core contract and periphery scripts.

Microchain is an open-source project, making its code available for review by the community. The team values transparency and encourages external contributions and scrutiny to improve the platform. 

Full audit reports are available here: https://docs.microchain.systems/resources/security-audits

Additional information, including technical documentation and updates on upcoming features, is available through the official Microchain website and communication channels.