Swaps, Liquidity Pools, Farming

Swaps

Swaps on aeSwap allow users to exchange one token for another through an automated market maker (AMM) model. This process involves selecting tokens to swap, reviewing transaction details such as fees, price impact, and minimum received, and executing the swap. The AMM provides liquidity from various pools, ensuring traders can execute swaps instantly without needing a direct counterparty.

Liquidity Pools

Liquidity pools are the cornerstone of aeSwap, enabling the AMM mechanism. Users can add liquidity by depositing an equivalent value of two tokens, creating a market for those tokens to be traded. In return, liquidity providers receive LP (Liquidity Provider) tokens, representing their share of the pool and entitlement to a portion of the trading fees.

Farming

Yield farming on aeSwap rewards users for providing liquidity to selected pools. By depositing LP tokens into a farming contract, users can earn additional rewards, typically in the platform's native token. This incentivizes the provision of liquidity, contributing to the depth and stability of the market.