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| Automated markets |
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In CoinRepublik, there are various types of markets, many of which are known as automated markets. These markets are essential because almost everything you trade within the platform is done on an automated market, making trading straightforward and accessible to all users. |
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An automated market is a unique type of market where buyers do not require sellers, and sellers do not require buyers. Instead, the market itself acts as both the buyer and the seller, always ready to facilitate trades at any time. The prices in these markets are not static; they adjust dynamically after each transaction based on a factor called volatility. |
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Volatility is a measure of how much the price will change per unit traded. For example, if a market for wood has a volatility of 0.01 and an initial price of 1, each transaction will influence the price accordingly. Let’s say a user buys 23 units of wood; with each unit, the price increases by 0.01. After the transaction, the price would rise to 1.23. Conversely, if the user sells 25 units of wood, the price would decrease by 0.01 per unit sold, resulting in a final price of 0.75. |
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For products like food, cigars, and other consumables, each country in CoinRepublik has a dedicated automated market for each item. These markets operate in the local currency of each country, such as IDR, RON, or GBP, giving users the ability to trade in familiar currencies. This localization of markets allows users to buy and sell within the context of their own economy while also having a standardized system for international trading. |
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Automated markets provide stability and reliability. They guarantee that users will always have a buyer or seller available, regardless of the time of day. This ensures that the market remains active and functional 24/7, offering users the flexibility to engage in trades whenever they choose. |
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Open Beta
