AMM Liquidity Pools

Disclaimer: here

This document describes our current implementation/idea about the feature. Changes are likely, since we have to find consensus for a merge into the Runes codebase.

Merging our proposed features into the Runes codebase would enable swaps between Runes. The foundation of this swap functionality is the liquidity pools, which hold:

• The respective Rune, e.g., DOG•GO•TO•THE•MOON

• A Base Rune, e.g., UNCOMMON•GOODS

The base Rune can be freely chosen, though it is generally advisable to select one of the most liquid Runes with CEX listings as the base Rune.

Liquidity providers earn a customizable LP fee on every swap, with the fee being paid in the Base Rune.

The AMM pool operates on the same price curve as Uniswap V2.