User Interface

User Actions

For each user, there are two types of action: 1. Provide Liquidity and 2. Swap Tokens.

To provide liquidity, the user needs to give the pool two tokens (Token0 and Token1). Then, the user will receive the liquidity token that marks the partial ownership of the pool by the user. To withdraw the previously-provided asset from the pool, the user can burn the liquidity token and receive Token0, Token1, and the rewards (explained later).

To swap tokens, the user gives the pool one type of token (Token0) and receives another type of token (Token1) from the pool. The exchange rate is determined by the PMM algorithm, and the pool will take a small percentage of the trading amount as the gas fee (rewards) for the liquidity provider.