Transaction

The diagram below illustrates the steps involved during a user-initiated swap transaction.

Phase 1 Transactions

1. Trader connects wallet to ImmutaSwap and digitally signs with a timestamp that expires in 24 hours.

2. Trader selects a token pair to be traded and amount of cryptocurrency to be sent.

3. ImmutaSwap calculates a trade offer using the constant product formula (X * Y = K) and based on the liquidity pool reserves.

4. ImmutaSwap responds to the trader with an offer amount.

5. If the trader accepts the offer, they will then deposit cryptocurrency into the ImmutaSwap wallet using the Immutable X API.

6. Immutable X returns a Transaction ID to the trader after transaction completion.

7. The trader sends the Transaction ID, the deposited cryptocurrency amount, and the slippage tolerance to ImmutaSwap.

8. If the amount to disburse is below the slippage tolerance or any other internal criteria are not met, then the trader is issued a refund and the transaction is closed.

9. If the transaction is valid, then a Wallet Silo is selected to digitally sign the transaction.

10. ImmutaSwap deposits the resultant cryptocurrency amount into the trader's wallet using the Immutable X API.

11. ImmutaSwap informs the trader that the transaction was successful.

*Although arbitrage is a key to maintaining healthy liquidity pools, it is not involved in the cryptocurrency swap transaction.

Considerations

Deviations from the normal transaction process will address as shown below:

• If the trader disconnects while the swap is in progress, they will be able to return to the transaction history page and re-initiate the process.

• If the transaction slippage threshold is not met, the trader's cryptocurrency will be returned.

• The trader will be able to cancel a transaction and receive a refund if cryptocurrency has not been dispersed for that particular transaction.

• The trader will be able to contact customer support for any given transaction to deal with unique situations.

• The trader will be warned if the exchange is a bad deal. Trader will also be shown the USD value of the cryptocurrency they send and receive.

• ImmutaSwap has ensured that trader's will be unable to exploit the system by:

  • Requesting a refund on an exchange where funds have been disbursed

  • Counting an Immutable X transaction twice

  • Requesting crypto from another traders Immutable X transaction

  • Exploiting race conditions where an exchange might be in an inconsistent state