AMM Liquidity Pools
Once a relic mints out, depending on its mint terms, the accrued $MBTC will be put into a liquidity pool together with the configured amount of the minted relic. Following you will have a pair like e.g. MBTC/WE•LOVE•RELICS. The AMM pool operates on the same price curve as Uniswap V2.
The fee of the pool can be controlled by whoever owns the relic inscription. After setting them initially, they can only be decreased and never again increased.
Swaps
Swap protocol messages typically come with the following options:
Input relic
Specifies the input relic, defaults to MBTC
Output relic
Specifies the output relic, defaults to MBTC
Input amount
Min/max amount of input tokens
Output amount
Min/max amount of output tokens
Is exact input?
If false, this is an exact-output swap. If true, this is an exact-input input swap.
MEV?
One measure to reduce MEV (Miner Extractable Value) is to prevent tokens bought in one block from being sold again in the same block. This means that if a sniper wants to sandwich a purchase of 10 WE•LOVE•RELICS for 1 MBTC with a 10% slippage, they must either assume multi-block risk or hold a substantial amount of WE•LOVE•RELICS. In that case, they would function more as a market maker than as an MEV extractor.
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