| name | danogo-clmm |
| description | Use this skill when the user wants to swap stablecoins on Cardano via Danogo's
concentrated-liquidity DEX. Triggers on: "swap USDA", "swap DJED", "stablecoin swap",
"Danogo", "concentrated liquidity", "CL pool", "stablecoin arbitrage", "provide liquidity",
"LP position". Danogo pools are on-chain UTxOs queryable via Ogmios with sqrt-price math.
|
| version | 1.0.0 |
Danogo Concentrated-Liquidity Stablecoin DEX
Swap between Cardano stablecoins (USDA, DJED, iUSD, USDCx, USDM) using Danogo's on-chain CL pools.
Prerequisites
- Ogmios endpoint for UTxO queries (e.g.,
http://localhost:1337)
- Cardano submit-api or MCP for transaction submission
- Payment signing key for executing swaps
How it works
Danogo uses Uniswap V3-style concentrated liquidity on Cardano:
- Pool state lives in UTxOs at a known script address
- Each pool datum contains
sqrtPrice, liquidity, currentTick, feeRate
- Price =
sqrtPrice^2 (the datum stores the square root, not the price itself)
- Swaps consume the pool UTxO and produce a new one with updated state
Scripts
| Script | Purpose |
|---|
scripts/danogo-client.js quote | Get swap quote from on-chain pool state |
scripts/danogo-client.js pools | List known stablecoin pool addresses |
scripts/danogo-client.js price <pair> | Current price for a stablecoin pair |
Safety rules
- Always query fresh pool state before building a swap. Pool UTxOs change after every transaction — using a stale
outRef causes "UTxO not found" errors.
- Do NOT double-sqrt: The datum stores
sqrtPrice. Square it to get the price ratio. Do not apply Math.sqrt() — that was a known SDK bug.
- Slippage: Use 0.5-1% for stablecoin pairs. Tighter than typical DEX swaps because stablecoins have low volatility.
- Minimum swap: Each pool has a
minSwap field in the datum. Swaps below this amount fail validation.
- Confirm network (mainnet vs preprod) before querying — pool addresses differ.
Swap flow
1. Query pool UTxO via Ogmios (queryLedgerState/utxo at pool script address)
2. Decode CBOR datum → extract sqrtPrice, liquidity, feeRate
3. Calculate: price = sqrtPrice^2, outputAmount = inputAmount * price * (1 - fee)
4. Build swap transaction with pool UTxO as input + swap redeemer
5. Sign and submit
Known stablecoin pairs (mainnet)
| Pair | Fee | Notes |
|---|
| USDA/DJED | 0.05% | Tightest spread, highest volume |
| USDA/iUSD | 0.05% | Indigo synthetic USD |
| USDCx/USDA | 0.05% | Wrapped USDC bridge |
| USDM/USDA | 0.1% | Moneta stablecoin |
Liquidity provision
- Choose a tick range (price band) for concentrated liquidity
- Calculate token amounts needed for the chosen range
- Build add-liquidity transaction → receive LP NFT
- Earn trading fees proportional to your share of active liquidity
- Remove liquidity by burning the LP NFT
Troubleshooting
| Symptom | Cause | Fix |
|---|
| Price ~0.0001 instead of ~1.0 | Double-sqrt bug | Square sqrtPrice, don't sqrt it |
| "UTxO not found" on swap | Stale pool outRef | Re-query pool UTxO immediately before building tx |
| Swap tx fails validation | Below minSwap | Check pool datum minSwap field |
| Large slippage on small swap | Low liquidity in tick range | Check active liquidity at current tick |
