> 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.