Overview

CoolDEX is the decentralized exchange component of the Something Cool platform. It is a modified fork of Raydium with specific enhancements to improve the trading experience, particularly for SC Bonding Curve-migrated tokens.

Key Features

Constant Product AMM

CoolDEX utilizes a constant product automated market maker (AMM) formula:

k = x \* y

Where:

• x is the amount of token X in the pool

• y is the amount of token Y in the pool

• k is a constant that must be maintained during trades

This formula ensures that the product of the two token reserves remains constant, providing liquid markets for all pairs.

Enhanced Fee Mechanisms

One of the most significant enhancements in CoolDEX is the customizable fee structure for community contribution tokens:

• Zero Fee Tokens: No fees charged on swaps

• Community Contribution Tokens: Configurable fee rates with customizable distribution

For community contribution tokens, fees can be distributed in three ways:

1. Burning: Reduces token supply automatically during trades

2. Holder Rewards: Accumulates rewards for token holders

3. LP Rewards: Allocates rewards to liquidity providers

Optimized Account Structure

CoolDEX has been optimized to reduce the number of required accounts by:

• Removing OpenBook dependency

• Streamlining account references

• Optimizing for Solana's parallelization benefits

Token-Specific Logic

The DEX implements token-specific logic to handle:

• Different fee structures based on token type

• Automatic burning during swap operations

• Fee accumulation for holder and LP rewards

Restrictions

Currently, only tokens migrated from SC Bonding Curve can be listed on CoolDEX. This ensures that all tokens on the DEX have undergone proper vetting and migration processes.

Use Cases

CoolDEX is designed to support:

1. Token Trading: Efficient swapping between tokens and SOL

2. Liquidity Provision: Adding and removing liquidity to earn fees

3. Yield Generation: Earning rewards from community contribution tokens

4. Token Burning: Automatic supply reduction for deflationary tokens

Integration

CoolDEX can be integrated with:

• Wallets supporting Solana transactions

• Trade aggregators looking for additional liquidity sources

• DeFi applications requiring token swap functionality

• Portfolio trackers monitoring assets and rewards