What is WBFSwap？
WBFSwap is based on the principle of "liquidity pool" to exchange crypto assets. The price of the crypto will be determined by the amount of cryptos in the liquidity pool.
How does WBFSwap determine the price of Crypto？
WBFSwap uses the following formula to determine the transaction fee and price between the two crypto assets. Traders swapping or adding funds into the liquidity pool will affect the price of cryptos. In the same way, traders adding and removing funds from the liquidity pool is involved in market making (AMM automatic market maker).
Shares and Revenue Formula Explained
Liquidity Pool Share Calculation Formula:
Shares obtained by adding liquidity = total system issued shares * (user mortgage assets / total liquidity pool)
Revenue Calculation Formula:
Liquidity provider revenue: Part of the transaction fee income of the Swap & Liquidity Pool
The swap & pool fee income portion will enter the liquidity pool in real-time after each transaction is completed.
Each transaction in the exchange pool will incur a corresponding fee. At the same time, when adding to and removing from the exchange pool, if a transaction occurs (when adding assets, the system will split into two assets proportionally; removing assets, if you choose to redeem in a single coin), will incur a fee.
If operating add/remove too frequently, factors such as transaction fees, price fluctuations, slippage, and constant function leverage may cause the value of shares to wear.
Through WBFSwap, traders can exchange cryptos quickly. In addition, they can earn interests by adding liquidity to the pool.
- Swap Cryptos in seconds
In the process, smaller transactions won’t generate any spreads, and larger transactions will significantly reduce slippage through the swap. Traders can enjoy stable prices and competitive fees.
- Add liquidity and earn shares and interests
Traders who add liquidity to the pool, by adding funds, will earn fees generated by the pool transactions.
Note that you can remove your funds from the pool according to your current pool share. The removal can be proportional to the two cryptos of the pair selected, or you can pick one of the cryptos individually. If you choose one crypto, you will have to pay a transaction fee, which will be deducted from the amount you can get.