Voltswap is a non-custodial Decentralized Exchange (DEX) which allows users to trade trustlessly, peer-to-peer, with liquidity that is supplied by other users.
To be a liquidity provider, holders of supported tokens need to supply equal parts liquidity for the quote token and a base token in return for liquidity provider (LP) tokens. LP tokens are the certificate to the holder that they have provided liquidity to the token pair. This pooled liquidity enables traders access to the base or quote tokens in exchange for a small fee, which is distributed proportionately to all of the liquidity providers.
VoltSwap is an “automated market maker” (AMM, fork of Uniswap V2). While a user’s underlying tokens remain in the pool, fluctuations in the price of the two underlying tokens automatically recalibrate the quantity of those tokens to conform to the equation x*y=k, where x and y are the quantities of the two paired tokens, and k is constant. This means that even though you supply equal parts of two tokens to the pool, the quantities you receive when you reclaim your liquidity will change relative to the difference in the change in price of the two tokens when you remove the liquidity. If the price of x token goes up, and y token goes down, you will have less of x and more of y, and vice versa. If the price of both tokens goes up, or the price of both goes down, you will nonetheless have relative quantities of each token proportionately to the difference in the change of the price of x and y.
Copy link