KLAYswap

KLAYswap, Klaytn’s Decentralized, Automated Liquidity Protocol. AMM is an innovative trading mechanism that evolved from order book-based DEXs to change the way we trade cryptocurrencies on-chain. Instead of buy/sell order books, liquidity pools created by liquidity providers allow traders to trade freely, and liquidity providers share any generated transaction fees as revenue in proportion to their individual liquidity contributions. In addition, any holder of KCT (Klaytn Compatible Token) type tokens can become a liquidity provider. The AMM mechanism of KLAYswap is based on the formula x * y = k where x = KLAY, y = KCT Token, and k = Constant Function. The token price range is set according to the quantity of each token when the corresponding liquidity pool is created. For example, if the liquidity supply of x (KLAY) increases, the supply of y (KCT token) decreases to maintain the constant function, k. In this way, the supply of each token in the liquidity pool is designed to fluctuate with prices set accordingly. In other words, KLAYswap is an instant swap protocol that operates with an on-chain liquidity pool, where liquidity is guaranteed by automated market-making (AMM) mechanisms. It is an on-chain swap service that allows anyone that has any KLAY or KCT-type token cryptocurrency to become a liquidity provider and earn income from transaction fee commissions.