FortuMax

FortuMax is an innovative AMM that redefines the conventional Automated Market Making (AMM) model by introducing a dynamic settlement engine. This allows traders to win bigger by trading within a predefined price range and paying a small premium. The platform aims to enhance user experience and engagement while providing significant benefits to liquidity providers (LPs) and long-term holders.

In traditional AMM platforms like Uniswap, the settlement price of a trade is determined by the price curve, which reflects the supply and demand of a trading pair. This results in a known price at the moment of transaction. FortuMax, however, offers a novel approach where traders agree on a price range instead of a fixed price point. This mechanism helps prevent third-party manipulation of transaction order due to settlement uncertainty.

Key Features of FortuMax (Two Trading Alternatives):

• Trade Smart: This option allows traders to trade within a small price range around the AMM price, offering MEV (Miner Extractable Value) resistance similar to normal AMM trading but with added security.
• Win big: This option provides a more lottery-like experience. The settlement price is set within a broader and more drastic range, giving traders the chance to win significantly more than the market price.

How It Technically Works: Price Range Agreement: Traders agree on a price range instead of a specific price point. Verifiable Random Function (VRF): The final settlement price is determined by VRF, ensuring fairness and transparency. The price is based on a probability distribution, which can be normal, skewed, or any other user-defined distribution.

Example Scenario: Suppose the market price of a token is 30 USD. Traders can set a price range from 25 to 100 USD with a left-skewed distribution. Based on this setup, there is approximately a 15% chance of the final settlement price being 60 USD, which is twice the market price.

Benefits and Impact

1. High Returns and Instant Trading: FortuMax caters to traders seeking high returns through instant trading opportunities.
2. Enhanced Benefits for LPs: The platform is designed to increase benefits for liquidity providers and token holders by driving more engagement and trading volume.
3. Gamified Trading Experience: By introducing elements of gamification, FortuMax transforms the traditional trading experience into a more engaging and enjoyable activity, fostering a vibrant community.

Advanced Features and Future Possibilities

1. Customization and Flexibility: In the future, FortuMax plans to offer permissionless configuration of price ranges and probability distributions, allowing traders to customize their trading experience.
2. Enhanced Liquidity for Existing AMMs: By integrating collateral pools, existing AMM platforms like Uniswap and PancakeSwap can enhance their liquidity and attract more users.
3. Application to Emerging Assets: FortuMax can be applied to the use and distribution of emerging assets such as Apecoin and Nouns, providing a novel way of token issuance.

We aims to bring new vitality to the DeFi landscape by offering a unique and engaging trading platform that benefits traders, liquidity providers, and long-term holders. With its innovative approach to AMM and commitment to transparency and fairness, FortuMax is poised to reshape the future of decentralized trading.

Our goal was to introduce randomness into the results of swap transactions. To achieve this, we needed a verifiable random number as our source of randomness, so we chose Chainlink's VRF (Verifiable Random Function) service. Given the high computational cost of calculating random distributions on-chain and the need for verifiable results, we opted to perform the final price calculation off-chain based on the random source.

Here’s the detailed process: Initiating the Swap Order

• A user initiates a swap order.
• The smart contract requests a random number from Chainlink VRF for this order.
• In Chainlink’s callback function, the random number is emitted as an event.
• Our node listens for this event and, based on the transaction type and random number, calculates the final settlement price using a predefined probability distribution function. Off-Chain Price Calculation
• The node calculates the final price off-chain using the random number.
• Once the final price is determined, the node calls the settle function on the smart contract to complete the transaction. Verifiability and Security
• Since the random number is generated on-chain, anyone can verify that the node calculates the final price according to the agreed rules.
• To prevent malicious behavior by the node, we can implement a stake-slash mechanism, where nodes stake tokens and get slashed if they are found to be acting dishonestly.

Hacky part: One key reason we introduced random trading was to address the Miner Extractable Value (MEV) problem. However, during development, we realized that nodes could still manipulate the order in which transactions are settled. We discovered that the order of transactions needing settlement is already determined on-chain. This allows us to solve the problem of transaction order manipulation by nodes during the settlement phase, turning a potential issue into a solution.