in Algorand (ALGO), Insights
Tinyman (tinyman.org) founder Kaan Eryılmaz thinks of Tinyman as a metaverse character coming from a world of financial debt and wealth inequality (sounds familiar!).
Tinyman is the hero in this vision - on a mission to build a financial system on the blockchain. That’s the broader goal but let’s consider in more detail as to how Tinyman is looking to deliver on that vision.
What is Tinyman?
Tinyman is a permissionless, trustless decentralized trading protocol that runs on the Algorand blockchain. Users can trade any Algorand Standard Asset (ASA) through liquidity pools which use an Automated Market Maker (AMM) algorithm.
The project has three core components: the protocol itself, a web application that hosts the main user interface, and an analytics service that provides all manner of trading statistics.
The project secured $2.5 million in funding from Arrington Capital, Genesis Capital, Digital Currency Group (DCG), BlockTower Capital and others in 2021.
Is Tinyman a DEX?
Tinyman is indeed the first decentralized exchange (DEX) to be built on the Algorand blockchain. Its AMM protocol went live on the Algorand blockchain in October 2021.
It allows users to create swaps (with other cryptocurrencies) on the platform. To make those swaps possible, the Tinyman AMM depends on liquidity pools.
How does Tinyman liquidity work?
Users can create liquidity pools to earn money on swaps via the capital locked within those pools.
In early 2022, Tinyman added further functionality with the introduction of staking pools, in collaboration with the Algorand Foundation. The objective is to bring in liquidity from non-Algorand assets, like USDC and USDT.
The platform also bridges to other networks. By bridging across to pNetwork and Algomint, Tinyman crypto users gain access to assets on a number of other blockchains.
How to access Tinyman Algorand
The DEX can be accessed by navigating to the homepage of Tinyman.
You can then use WalletConnect - an open source protocol for connecting decentralized applications to mobile wallets - to connect to your Web3 wallet and access the Tinyman exchange.
Is Tinyman Safe?
Tinyman Algorand smart contracts are published on Github, and have been audited by Runtime Verification. Assets are permissionless so they can’t be frozen.
Despite its best efforts, Tinyman took a beating when it was subject to an attack on Jan 1, 2022. Hackers exploited what was at the time an unknown vulnerability in the project’s smart contracts.
You might be left wondering after such an exploit, is Tinyman safe? The reality is that we remain in the early days of DeFi. Projects are in their infancy and so the default position for anyone getting involved should be to have an abundance of caution. No project can guarantee that it is unhackable.
The positive take away in Tinyman’s case is that the project stepped up and provided a compensation program to make users happy again.
DeFi insurance is at an embryonic stage but it is growing and it has a role to play here. In recognition of that, Tinyman has now partnered with Algorand-based decentralized insurer Nimble.
Running on Algorand
Every blockchain aims to solve the blockchain trilema of decentralization, security and scalability. With the benefits accruing to Tinyman, Algorand blockchain is fast, cheap, secure, reliable and green.
The proof of stake-based network allows anyone that holds 1 ALGO (its native token) or more to participate in voting, while delivering almost instant transaction finality.
The Algorand blockchain has also seen some adoption recently though the launch of Napster and LimeWire. It remains in the mix alongside a number of smart contract-focused blockchains that are jockeying for position to garner real world adoption.
How to buy Algorand
You can buy Algorand (ALGO) and other cryptocurrencies in Exodus, in any way you prefer:
- Use a credit / debit card, bank account, or Apple Pay. The easiest payment gateway, Ramp or MoonPay, is chosen for you depending on your region and availability.
- Exchange Bitcoin and 200 other cryptocurrencies for Algorand (ALGO) using the built-in exchange app
- Link Exodus with the FTX exchange for even more options
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.