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HerculesDEX

The primary decentralized exchange for LazaiTrader on Metis Andromeda.

Overview​

HerculesDEX is a leading DEX on Metis Andromeda, utilizing the CamelotYakRouter for efficient token swaps.

PropertyValue
TypeAMM (Automated Market Maker)
ChainMetis Andromeda
Router Address0xF9a6d89DCCb139E26da4b9DF00796C980b5975d2
Status✅ Whitelisted

How AMM DEXs Work​

Liquidity Pools​

HerculesDEX uses liquidity pools - smart contracts holding token pairs:

┌─────────────────────────────────────────┐
│          ETH-USDC Pool                   │
│                                         │
│   ETH Reserve: 1,000 ETH                │
│   USDC Reserve: 2,500,000 USDC          │
│                                         │
│   Price: 2,500,000 / 1,000 = $2,500/ETH │
└─────────────────────────────────────────┘

Constant Product Formula​

Prices adjust automatically based on trades:

x * y = k (constant)

Before trade: 1,000 ETH × 2,500,000 USDC = 2,500,000,000
After selling 10 ETH: 1,010 ETH × 2,475,248 USDC = 2,500,000,000
New price: $2,450/ETH

Slippage​

Larger trades move the price more:

Trade SizePool ImpactSlippage
0.1 ETHMinimal~0.01%
1 ETHSmall~0.1%
10 ETHModerate~1%
100 ETHSignificant~10%+

LazaiTrader Integration​

Router Type​

LazaiTrader uses the CamelotYakRouter interface:

  • Optimized routing
  • Multi-hop support
  • Gas efficient

Supported Pairs​

PairPool Address
WETH-m.USDCVia router
WMetis-m.USDCVia router

Trade Flow​

1. Bot detects trigger condition
2. Calculates trade amount
3. Calls SCW.executeTrade()
4. SCW approves tokens for router
5. Router finds best path
6. Swap executed
7. Tokens received in SCW

Advantages​

Deep Liquidity​

HerculesDEX has significant liquidity on Metis:

  • Established pools
  • Active liquidity providers
  • Competitive rates

Proven Technology​

Built on battle-tested AMM mechanics:

  • Similar to Uniswap/Camelot
  • Well-understood behavior
  • Predictable execution

Multi-Hop Routing​

Can route through multiple pools for better rates:

WETH → METIS → USDC
(if better than direct WETH → USDC)

Considerations​

Slippage​

For large trades relative to pool size:

  • Price impact increases
  • May receive less than expected
  • Min/max settings help protect

MEV (Miner Extractable Value)​

AMM trades can be subject to:

  • Front-running
  • Sandwich attacks
  • Arbitrage
info

LazaiTrader's min/max amount settings help limit exposure to these risks.

Impermanent Loss (for LPs)​

Not applicable to traders - this affects liquidity providers only.

Trade Execution Details​

Approval Flow​

Before swapping:

1. Bot calls SCW.approveToken(WETH, router, amount)
2. SCW approves router to spend WETH
3. Router can now execute swap

Swap Call​

router.swap({
    tokenIn: WETH,
    tokenOut: USDC,
    amountIn: 0.25 ETH,
    amountOutMin: calculated based on slippage tolerance,
    recipient: SCW address
})

Result​

Sent: 0.25 WETH
Received: 624.50 m.USDC
Fee: ~0.3%
Slippage: ~0.1%

Verifying Trades​

All trades are on-chain and verifiable:

  1. Find transaction hash from bot notification
  2. Open Metis Explorer - explorer.metis.io
  3. Search transaction hash
  4. View details:
    • Tokens transferred
    • Amounts
    • Gas used
    • Contract interactions

Fee Structure​

Fee TypeAmountRecipient
Swap fee~0.3%Liquidity providers
GasVariableNetwork
Platform fee0%LazaiTrader takes nothing

FAQs​

Why HerculesDEX over other Metis DEXs?​

  • Deepest liquidity for target pairs
  • Reliable router implementation
  • Active development and support

Can I add liquidity through LazaiTrader?​

No, LazaiTrader is for trading only. To provide liquidity:

  1. Withdraw funds to your EOA
  2. Add liquidity directly on HerculesDEX

What if liquidity dries up?​

Trades may fail or have high slippage. The bot:

  • Detects failed trades
  • Notifies you of issues
  • Can skip trades below minimum

Further Reading​