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Introduction
Soku Swap is a decentralized exchange that lives on Ethereum Network and the Binance Smart Chain. It uses automated market maker smart contracts to create liquidity pools of both ERC-20 tokens and BEP-20 tokens. This allows users to trade using an algorithm versus an order book used on conventional exchanges. Prices are determined using the formula x*y=k(x coins of token X and y coins of token Y, and always maintains the invariant that xy=k for some constant k), and this ensures reserves stay in relative equilibrium. Soku Swap reserves are pooled among liquidity providers who supply the exchange with tokens in exchange for a share of the transaction fee. Soku Swap is its utilizes registry contracts to facilitate exchange between different currencies. The system mechanics ensure trades between cryptocurrencies are based on their relative supply.
The platform is designed to be easy to use, support privacy, lower gas fees. Soku Swap is designed for traders and performs exceptionally well as a component of other smart contracts that require guaranteed on-chain liquidity.
This whitepaper describes the mechanics that work behind the scenes at Soku Swap.
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