FWX DEX
INTRODUCTION
What is FWX DEX?
FWX DEX is a decentralized exchange (DEX) that operates on the Avalanche. It uses an Automated Market Maker (AMM) model to facilitate the tokens, allowing users to swap, provide liquidity, and earn rewards through liquidity providing.
Automated Market Maker (AMM)
An AMM is a decentralized exchange mechanism that relies on mathematical formulas xy=k to set token prices, using liquidity pools rather than traditional order books. This ensures continuous liquidity and trading opportunities.
HOW FWX DEX WORKS
Liquidity Pools
Liquidity pools on FWX DEX consist of pairs of tokens provided by users. These pools allow for continuous trading and price determination based on the ratio of the tokens within them.
Swapping
Users can swap one token for another directly through liquidity pools. The AMM model ensures there is always liquidity for trades as long as tokens are available in the pools.
LIQUIDITY PROVISION
Adding Liquidity
Navigate to the Liquidity Page: On FWX DEX, go to the "Pool" tab.
Select Tokens: Choose the pair of tokens you want to add to the pool.
Provide Amounts: Enter the amounts of both tokens to add.
Confirm: Approve the transaction in your wallet and confirm the addition of liquidity.
Removing Liquidity
Navigate to the Liquidity Page: Go to the "Pool" tab.
Select Pool: Select the liquidity pool from which you want to remove liquidity.
Remove Amount: Enter the amount of liquidity you wish to remove.
Confirm: Approve the transaction in your wallet and confirm the removal.
SWAPPING TOKENS
How to Swap
Navigate to the Swap Page: On FWX DEX, go to the "Swap" tab.
Select Tokens: Choose the token you want to swap from and the token you want to swap to.
Enter Amount: Enter the amount of the token you want to swap or the amount of the token you want to receive.
Review: Review the transaction details, including the exchange rate and fees.
Confirm: Approve the transaction in your wallet and confirm the swap.
Fees
0.1% is charged for each swap. This fee is distributed to liquidity providers and used for platform maintenance and development.
Slippage
Slippage refers to the difference between the expected price of a trade and the actual price. Users can set a maximum slippage tolerance to control how much they are willing to accept.
CONTRACTS
All contracts listed below are on Avalanche C-Chain:
Factory: 0x9Ad6C38BE94206cA50bb0d90783181662f0Cfa10
Router: 0x60aE616a2155Ee3d9A68541Ba4544862310933d4
FAQs
Q1: Can I provide liquidity with any token? A: Liquidity can be provided for any pair of ERC20 tokens.
Q2: How are liquidity provider rewards calculated? A: Rewards are calculated based on the proportion of the pool you own and the swap fees collected.
Q3: What happens if the price of a token changes significantly while swapping? A: If the price changes beyond your slippage tolerance, the transaction will revert.
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