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  • Introduction
  • Network
    • SXP
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  • Swap
    • Smart Contract
      • Implement a Swap
      • Providing Liquidity
      • Building an Oracle
      • Flash Swaps
      • Pair Addresses
      • Supporting meta transactions
    • Subgraph API
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      • MasterChef
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    • Reference
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  • Swipechain
    • Introduction
    • Swipe Nodes
      • Churn
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      • Transactions
      • Continuous Liquidity Pools
      • Incentivizes
      • Governance
    • Run SwipeChain
      • Build on Source Code
      • Build with Script
    • Developers
      • How to contribute
      • Connecting to SwipeNode
  • Staking
  • Staking Details
    • Swipe Network
    • SXP Bonding
    • Unbond SXP
  • Metamask
    • Add Swipe Token
    • Deposit SXP
    • Connect MetaMask
    • Stake SXP
  • Trust Wallet
    • Add Swipe Token
    • Deposit SXP
    • Connect Trust Wallet
    • Stake SXP
  • Ledger
    • Connect Ledger
    • Add Swipe Token
    • Deposit SXP
    • Connect to Swipe
    • Stake SXP
  • View your Rewards
  • Claim Your Rewards
  • Governance
    • Vote
    • Proposals
  • FAQ
    • Frequently Asked Questions
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  1. Swipechain
  2. Swipe Nodes

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.

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Last updated 3 years ago

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