TaalSwap Exchange
This page describes token swaps and liquidity providing on TaalSwap exchange.
TaalSwap AMM provides an easy-to-tap-into environment for trading cryptocurrencies on-chain. Liquidity pools created by liquidity providers enable users to trade tokens without any constrains, and liquidity providers are rewarded a portion of transaction fees in proportion to their individual liquidity contributions.
To maintain liquidity, TaalSwap AMM basically follows the well-established formula x * y = k where x = TAL, y = TaalSwap-supported Token, and k = Constant. The price of two tokens is determined according to the quantity of each token put into the corresponding liquidity pool. For example, if the liquidity supply of x (TAL) increases, the supply of y (TaalSwap-supported token, say, USDT) decreases to keep the constant k invariable. For a more detailed description of this mechanism, you can refer to this webpage.
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