> For the complete documentation index, see [llms.txt](https://docs.swipe.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.swipe.org/swipechain/swipe-nodes/continuous-liquidity-pools.md). # Continuous Liquidity Pools The algorithm for processing assets swaps is given by: `y = (x * Y * X) / (x + X)^2`, where `x = input, X = Input Asset, Y = Output Asset, y = output` The fee paid by the trader is given by: `fee = ( x^2 * Y ) / ( x + X )^2` The slip-based fee model has the following benefits: * Resistant to manipulation * A proxy for demand of liquidity * Asymptotes to zero over time, ensuring pool prices match reference prices * Prevents Impermanent Loss to liquidity providers **Staking** The stake units awarded to a liquidity provider is given by: `stakeUnits = ((R + T) * (r * T + R * t))/(4 * R * T)`, where `r = SXP Staked, R = SXP Balance, T = Token Balance, t = Token Staked` This allows them to stake asymmetrically since it has no opinion on price. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.swipe.org/swipechain/swipe-nodes/continuous-liquidity-pools.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.