What is ACY Swap?

ACY Swap is ACY Finance's first product, a decentralised exchange (DEX for short). Like other DEXs, ACY Swap facilitates your peer-to-peer token trades through tokens (liquidity) supplied by other users in smart contracts called liquidity pools. Liquidity pools allow swap transactions to happen without ACY Swap ever taking custody of the involved tokens.

DEXs such as ACY Swap are powered by an underlying protocol called 'Automatic Market Maker' (AMM). This protocol automatically adjusts the price of each token in a liquidity pool in accordance to their respective quantity within the pool.

Users can create new or add to existing liquidity pools by pooling together an equal amount of two tokens, also called a trading pair. In return for supplying liquidity pools on ACY Swap, users will earn a portion of all swap transactions (transaction fee, 0.3% of total transaction) made from transactions of the pools' trading pair, divided proportionally to all liquidity providers based on their contribution to the pool.

As proof of their stake in the pool, users will also receive ACY Liquidity Provider tokens (ALP Tokens), which are redeemable for the underlying assets at any time. However, the quantities of tokens reclaimed may change from the initial quantities supplied. The change is proportional to the fluctuation of each token's price: the higher the price of a token becomes, the less tokens a user be able to reclaim, and vice versa.

The steps of supplying liquidity on ACY SWAP can be found on our liquidity pool page.