# 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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