Technical Overview
DEX Architecture
A technical overview of how Send DEX works and why we built it differently. This document covers the AMM mechanics, permanent liquidity model, fee distribution, and creator rewards.
The Problems We're Solving
Traditional DEX architectures have fundamental issues that create risk for traders and misalign incentives for creators. We built Send DEX to address these problems directly.
Removable Liquidity
When liquidity providers can withdraw at any time, rug pulls become trivial. A project can build community trust, accumulate trading volume, then drain the pool instantly. Traders have no protection against this.
No Creator Incentives
Traditional DEXes provide no ongoing revenue to token creators. Once migration happens, creators have no financial incentive to maintain their community or drive trading activity. This leads to abandonment.
LP Token Complexity
Managing LP tokens requires understanding impermanent loss, rebalancing strategies, and timing withdrawals. This complexity creates attack vectors and excludes less sophisticated users from participation.
Fragmented Liquidity
When liquidity is spread across multiple providers with different strategies, depth becomes unpredictable. Large trades face variable slippage depending on who's providing liquidity at any given moment.
AMM Mechanics
Send DEX uses a constant product automated market maker, the same pricing model as Uniswap and Raydium. The key innovation is how we track reserves and distribute fees.
Constant Product
The invariant K = base * quote is maintained across all trades. When tokens flow out, the other side must flow in to preserve K.
This creates predictable price impact based on trade size relative to pool depth.
Real Quote Reserves
The pool tracks real_quote_reserves as the source of truth for pricing. This value updates after each trade and deposit.
LP fees increase this value, compounding pool depth over time.
Initial K
When a pool is created during migration, initial_k is calculated from the migrated reserves. This value is stored on-chain and used for reference calculations. As LP fees accumulate, the effective K grows, increasing pool depth and reducing slippage for traders.
Fee Distribution
Every trade on Send DEX splits fees three ways. This creates aligned incentives across the ecosystem: stakers, liquidity, and creators all benefit from trading activity.
Protocol Fees
A portion of each trade goes to the staking vault, distributed to SEND token stakers. This creates buy pressure for SEND and rewards long-term holders of the platform token.
LP Fees
LP fees stay in the pool, increasing real_quote_reserves. Since liquidity is permanent, these fees compound forever, continuously improving pool depth and reducing slippage for future trades.
Creator Fees
Token creators receive a percentage of every trade on their token's pool, forever. Fees accumulate in a per-creator vault and can be claimed at any time. This is the key incentive alignment that keeps creators engaged long-term.
Partner Verification
The same partner verification system from the launchpad applies to DEX trades. Verified partners (Axiom, Photon, GMGN, send.fun) get lower fees. Unverified transactions pay higher fees, making bot strategies economically unviable.
Creator Economics
Send DEX is where creator rewards activate. After migration from the launchpad, creators begin earning on every trade.
Perpetual Revenue
Creator fees have no expiration, no caps, and no vesting. As long as people trade the token, the creator earns. This creates genuine long-term alignment between creators and their communities.
Single Vault Per Creator
All creator fees accumulate in one vault per creator, regardless of how many tokens they've created. This simplifies claiming and provides a unified view of earnings across all successful tokens.
Incentive Alignment
Creators only earn if their token survives migration AND maintains trading activity. This inverts the typical pump-and-dump incentive structure. Building a real community with sustained interest becomes the optimal strategy.
For Traders
Send DEX provides a safer, more predictable trading environment for tokens that have graduated from the launchpad.
Rug-Proof Liquidity
With LP tokens burned, liquidity cannot be removed. Verify on-chain that lp_supply == 0 for any pool. No trust required in anonymous liquidity providers.
Slippage Protection
Every trade requires max_quote_in for buys or min_quote_out for sells. Transactions fail safely if price moves beyond your tolerance.
Growing Depth
LP fees compound in the pool, continuously increasing depth. Active pools become more liquid over time, reducing slippage for larger trades. Community deposits can further strengthen pools.
Predictable Pricing
Constant product formula means price impact is deterministic based on trade size and current reserves. No hidden fees, no front-running by the protocol, no oracle manipulation.
Pool Creation
DEX pools are created exclusively through migration from the launchpad. There is no direct pool creation - this is enforced at the protocol level.
migration_authorityPool creation requires a signature from the launchpad's migration authority PDA. This proves the CPI came from a valid launchpad migration, not a direct call.
burn_lp: trueThe migration instruction always passes burn_lp: true, ensuring LP tokens are burned in the same transaction as pool creation.
This architecture ensures every token on Send DEX has gone through the full launchpad lifecycle. No backdoor pool creation, no pre-seeded liquidity traps, no tokens that skip the bonding curve phase.