Pi Network’s New DEX and AMM Updates: What Every Pioneer Needs to Know

The Core Team behind the popular yet controversial project announced a few significant updates to two of its systems – its testnet decentralized exchange (DEX) and the Automated Market Maker (AMM).

The new features for both are designed to improve usability, strengthen liquidity organization, and help users (known as Pioneers) better evaluate tokens.

DEX, AMM Improvements

The statement from the team informs that one of the most substantial changes in the update is the shift toward Pi-denominated liquidity pairs. This aims to position the project’s native token as the primary base asset across the Testnet exchange. It mirrors liquidity models from other established DeFi ecosystems, in which concentrating liquidity around a dominant asset reduces fragmentation and should improve price stability.

The Core Team indicated that Pioneers will benefit from lower price volatility, reduced slippage during trades, better resistance to manipulation, as well as clearer and more reliable price discovery. It’s worth noting that these changes do not create new liquidity. They aim to make existing liquidity work more efficiently as user participation grows.

The announcement also outlined the refreshed DEX and AMM interface, which should simplify navigation and reduce friction for newcomers. The revamps change support Pi’s bigger goal of onboarding non-technical users into DeFi through “safe, hands-on experimentation” with Test-Pi.

Additionally, the team noted that it had introduced domain verification, which makes it mandatory for token issuers to link their coins to verified domains. This step is necessary to give Pioneers an additional data point to assess whether a token is genuinely associated with a project, business, or developer.

The team warned that this does not guarantee trustworthiness, but it helps surface clearer information and reduces the chances of misrepresentation.

Better Token Rankings

Aside from the aforementioned changes, the Core Team said it had begun testing a new liquidity-based token ranking system, which replaces the commonly used Market Cap metric. They believe the latter can be easily manipulated through artificial scarcity or low circulating supply.

On the other hand, the new system should reflect actual capital commitment within a token’s pool and make it harder to inflate rankings without deploying significant amounts of Test-Pi.

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