Aldrin is a decentralized exchange built to simplify trading in a DeFi system, with a mission of delivering a good user experience for traders. Aldrin also creates tools that are needed for successful trading.
Aldrin was founded by Hisham Khan in 2018, a former project manager at Bloomberg with more than a decade of working experience in building financial products. It offers users a decentralized exchange, yield farming opportunities, and even a portfolio rebalancer.
Aldrin Decentralized Exchange
Aldrin Decentralized Exchange is made up many tools that are useful for trading cryptocurrencies, either beginners or experienced traders.
In the Trade section, traders can view the chart of the assets they want to trade. Users of Aldrin DEX can easily swap their different solana spl tokens in the Swap section. Traders can also deposit their cryptocurrencies into the liquidty Pools available so as to enable the availability of digital assets for other users of the DEX to buy and sell these cryptocurrencies. (These concepts will be explained better in this same post later on).
Aldrin Token ($RIN)
The Aldrin Decentralized Exchange has its own utility token called RIN. This token is used to provide incentives to those who provide liquidity for the traders on the DEX. This token also serves as a reward for those who stake their cryptocurrency assets.
The RIN token can be staked on the protocol to earn more RIN. The higher the RIN token deposited; the more RIN will be received from the pool of the trading fees that is available to earn from.
With the RIN token, holders can also participate in the decision-making processes and proposals that guides the activities of the protocol.
With time, there are plans in place by Aldrin to buy back some certain amount of RIN and burn them. This technique removes those RIN tokens from circulation and it also gives the holders a possibility of an increase in the value of their RIN holding.
Trading on Aldrin
The Trade section view from Aldrin DEX: https://dex.aldrin.com/chart/spot/OOGI_USDC
This part of the Aldrin DEX contains the features needed to make instant trading activities. It shows the chart of the trading pair that is selected (in this case it is the OOGI/USDC token pair). Beside the trading chart towards the right side of the page is the Order Book section.
Generally, an Order Book is an electronic documentation of an asset’s buy and sell activities on a cryptocurrency exchange.
- Buy Order
On Aldrin DEX, the part of the Order Book denoted with the green color shows you the size of a digital asset and the price that a person is willing to pay so as to get them.
(The above image is extracted from the trading view image above)
The image above shows a buy order on the OOGI/USDC token pair from a trader. This means that the trader wants to buy 366,590 OOGI tokens at USDC$ 0.00512. The total cost of that trade would cost the buyer USDC$ 1876.94 if completed.
To complete this trade, a user must select the Buy Order with the most favorable price. From the image above, it shows that I have decided sell USDC$ 2,000 worth of my OOGI tokens available. After approving the transactions, my order is automatically matched with the buyer with the same fixed price and then the trade is executed. USDC$ 1876.94 would be sold immediately while the remaining unsold OOGI tokens would have to wait in queue until the order gets filled again.
- Sell Order
The part of the Order Book denoted with the red color shows the size of a digital asset and the minimum amount a seller is asking for to complete a trade.
This image shows the sell order from a user. It denotes that this trader is only willing to receive a minimum of USDC $0.00527 per OOGI token they want to sell. A buyer that selects this trade would pay USDC $302.60 to receive a total of 57,420 OOGI tokens.
To complete this trade, a user must have the total amount of USDC needed to complete the transaction. After selecting the order from the Order Book and I have approved the transaction, the protocol automatically fills the seller’s account with my USDC$ 300 and while mine is deducted with the same amount of USDC, I will be credited with 56,925 OOGI tokens.
Trade History sections displays all the recent trading activities of the selected token pair. It shows the time the trade occurred, the size and the price as at the moment it was traded.
Swapping on Aldrin
You can swap tokens on the Aldrin DEX. Swapping is the process of exchanging one token to another token instantly. This feature is made possible because of the availability of staked assets on Aldrin. Some traders provide their funds and digital assets, deposit them in the decentralized exchange to ease trading for other users.
Once you approve the transaction in your wallet, then the tokens and the amount selected for the swap is automatically deposited into that wallet.
Pools on Aldrin
A Liquidity pool is a pool of cryptocurrency tokens locked in a protocol which can be used to effect trading activities on that decentralized application. With this feature, there is an availability of a very liquid market that makes trading easier for people in a permissionless protocol. The pictures below shows the liquidity pool available for the SOL/USDC pair.
For the SOL/USDC pool, there is a deposit of $16.55m worth of the pair in the protocol.
When you stake your LP tokens that you have received for providing liquidity on the Aldrin protocol, you will be able to earn a certain amount of RIN per day.
The Dashboard section contains two tools. One is for cancelling Open Orders and the second is for settling trading account balances.
Any Buy or Sell Order that a user has placed that has not been executed in the ,market will appear here. So far the trade has not been completed, it can still be cancelled.
Immediately your buy or sell order has been executed, it comes to this section. Your balance would not reflect immediately until you Settle the Balances into your wallet address.
If you do not have a wallet address that can be used to trade on Aldrin, there is a page dedicated to the creation and accessing of wallet addresses. You can either create a new wallet or restore an existing solana spl wallet that has been created before, provided you have the seed phrase for that wallet address.
You can skip this section after saving the seed phrase provided. If you want to add the tokens of your choice, it is going to cost some sol.
After you have successfully created or restored your solana spl wallet address, you can now trade with that address. (You should have deposited some sol from an exchange like FTX or Binance).