Overview

AkronSwap is an automated market maker (AMM), a decentralized exchange (DEX) that allows users to trade assets directly without the need for a traditional order book to match buyers and sellers.

To achieve this, AkronSwap sources liquidity from users willing to loan out their assets to the protocol for a percentage of the swap fees generated when their assets are traded. These users are aptly named Liquidity Providers (LPs), and they receive Akron LP (ALP) tokens as a sort of receipt for their provided liquidity, which can be used to accumulate more yield or redeemed for the underlying deposit (plus any fees accrued on top) at any time.

Akronswap implements a dynamic swap fee structure in order to allow passive LPs to earn more by capturing a fair share of arbitrage value (or loss-versus-rebalancing from the point of view of LPs) through dynamic swap fees.

Akronswap allows only one swap per block per swap direction. This implementation ensures fair amount of dynamic swap fees are paid to LPs each block, because arbitrageurs are discouraged from splitting their swap in multiple transactions in one block in order to reduce the dynamic swap fee. The implementation also ensures that arbitrageurs are protected from sandwich attacks.