💙 The KuSwap Protocol
KuSwap was part of KuCoin Community Chain's early testnet phase, being tested for almost a month and launched shortly after KuCoin Community Chain's mainnet on 25th June. Designed with simplicity in mind, the KuSwap protocol provides an interface for seamless exchange of KRC20 tokens on KuCoin Community Chain. By eliminating unnecessary forms of rent extraction and middlemen it allows faster, more efficient exchange. Where it makes tradeoffs, decentralization, censorship resistance, and security are prioritized.
This site will serve as a project overview for KuSwap - explaining how it works, how to use it, and how to build on top of it. These docs are actively being worked on and more information will be added on an ongoing basis.
How it works
The exchange's liquidity is provided by Liquidity Providers ("LPs") who invest their tokens into Liquidity Pools. In exchange, a user receives LP tokens, which can then be staked in the "Farms" to earn KUS tokens. When a user conducts a token swap (trade) on the exchange, they will be charged a trading fee of 0.1 percent, which is calculated as follows: 0.05 percent is sent to liquidity providers as a fee, and 0.05 percent is utilized to burn KUS tokens.