Pact creates a decentralized exchange (DEX) for crypto assets. In comparison to centralized exchanges, DEXs are simple to access, do not require any customer identity verification, and can be seamlessly integrated into other decentralized finance (DeFi) services at almost no cost. Since they are an essential facility for many other applications, they are considered crucial for any modern blockchain. Pact is creating a DEX on Algorand - a proof-of-stake blockchain that aims to be simultaneously scalable, secure, and decentralized.

The Center for Cryptoeconomics (cryptecon), a platform of Swiss Economics, supports Pact designing the token system of the exchange, in particular:

• cryptecon works with Pact to determine its token economics, i.e. the management, allocation, and distribution of their tokens
• cryptecon assists Pact in designing efficient incentive mechanisms necessary to ensure sustainable growth for the platform.
• cryptecon helps Pact to determine a fair price for assets of the exchange (LP token price formula)

Methods

• Simulation of the output of the reward mechanism to propose and test parameters
• Econometric methods and data analyses of other DEXs for parameter calibration
• Research and analytical methods to determine fair price formula for LP tokens