Tinyman 101: How to use the AMM on Algorand

This tutorial walks through Tinyman, an automated market maker (AMM) on the Algorand blockchain that provides asset swapping and liquidity pools.

Tinyman 101: How to use the AMM on Algorand
Source: tinyman.org

Tinyman, an automated market maker, enables users to swap assets and provide assets to liquidity pools using the power of the Algorand blockchain. We use it as a quick and easy way to move between different asset mixes in our Algorand Standard Asset portfolio. In this tutorial, we demonstrate how to use the swapping and liquidity pool functions of the app.

Step 1: Go to Tinyman

You will arrive at the primary swap screen.

Step 2: Connect your wallet

Select the "Connect to Wallet" button in the top right of the screen. Tinyman will prompt you to select your wallet type.

Then scan the QR code with your WalletConnect.

You will need to accept the pairing in your wallet. Once complete, you will see the number of Algos in your wallet and your wallet address in the top right-hand corner of the app.

Step 3: Swap Assets

To select the asset you want to swap, select it from the drop-down menu. Then, input the number of that asset you want to swap. In this case, we are exchanging 2 Algo for Yieldly.

Select "see all " and then select Yieldly as the token we want to swap our 2 Algo for.

The final review screen before swap should look something like this.

As opposed to the Ethereum blockchain, Algorand is inexpensive and fast. Note that this transaction only costs us $0.02.

Select swap, and you will be brought to a transaction confirmation page.

After you confirm the swap, you will need to approve the transaction in your wallet. If you select the transaction that pops up in your wallet, you can see the exact details. It's a good habit to review every step of the trade before approving it.

Next, your transaction will process.

Once the swap completes, you will see a page like this. The price improved in our favor during the exchange, and it only cost $0.01. Additionally, due to slippage in our favor, we can claim an additional 1.3 Yieldly. Select redeem if this occurs to get extra assets. There will be a transaction fee, so you can always wait to redeem after several swaps if it makes more financial sense.

Congratulations!! You just completed your first swap on Tinyman as part of Algorand's DeFi system.

Step 4: Stake Assets in a Liquidity Pool

Next, we will cover placing assets in a liquidity pool. First, return to Tinyman's main screen. Select "Pool" in the top left corner. You should see something like this.

Select Add Liquidity. Then choose the asset pair you want to provide liquidity to. By adding to the liquidity pools, you gain a fraction of the fees when those assets are swapped on Tinyman. We selected Yieldly and Opulous. The first time you add to a specific pool, you will need to opt-in. This action adds the pool's native token to your wallet, which tracks how much of the pool you own and the number of fees you should receive.

Next, select the amount you want to add to the pool. We decided to pool all of our Yieldly. The assets you provide to the pool must be balanced. So when we max out the amount of $YLDY we are adding, we also add the equivalent value in $OPUL.

Confirm the transaction and sign it in your wallet. Your assets are added to the pool.

In return, you receive tokens for that pool to track your pool ownership.

Once your transaction completes, you may redeem additional assets because prices constantly change, and transactions are instant.

Finally, Tinyman displays the liquidity you provide under the Pool tab.

You can manage and withdraw your liquidity as required. Once complete, disconnect your wallet by selecting your wallet ID in the top right-hand corner of the screen.


Congratulations!! You have taken the next step on your journey through DeFi and Algorand. As always, there is a risk. We believe that Tinyman is an excellent tool on Algorand. It enables users to have the flexibility and take charge of their finances. Good luck!

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I am not a financial advisor. This article is for educational purposes only. You should do your own independent research before making any investment decisions.

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