ShadowSwap is an Automated Market Maker (AMM), and the Exchange is at the heart of ShadowSwap.
The ShadowSwap Exchange offers several features that support decentralized trading:
ShadowSwap lets users trade without the need to go through a Centralized Exchange. Everything you do on ShadowSwap is routed directly through your own wallet—no need to trust someone else with your coins!
You can only swap tokens on ShadowSwap if there is enough liquidity for those tokens. If nobody has added much liquidity for the token or tokens you want to swap, it will be difficult, expensive, or impossible to do so.
Providing liquidity will get you LP Tokens, which will earn you rewards in the form of trading fees for making sure there's always liquidity for the exchange to use.
ZAP features also allow you to be able to add or Remove liquidity from a side of the pool e.g CORE/USDT you can add more CORE to the pool by using the zap feature without needing USDT.
Yield farming lets users that are providing liquidity earn SHDW rewards by locking their LP tokens into a smart contract. The incentive is to balance out the risk of impermanent loss that comes along with locking in your liquidity.
An Initial Farm Offering is an event that lets users buy into a limited-time offer to purchase new tokens from Core Ecosystem. The IFO price is usually very generous.
In addition to Trading tokens, ShadowSwap users can also add liquidity to the DEX itself by contributing equal amounts of two tokens (a token pair) to create liquidity provider (LP) tokens.
Shadowswap charges a 0.3% fee for all trades, of which 0.20% is added to the liquidity pool of the token pair that was traded on.
A liquidity pool (LP) is a pool of two tokens, e.g. CORE and SHDW tokens. This pool is what allows users to exchange between the two tokens automatically.
Users can earn a share of the trading fees by depositing a pair of tokens into the LP (also known as "adding liquidity"). Users will receive an LP token, representing their share of the LP.
Liquidity pools are created by pairing together two different crypto tokens and depositing them into a smart contract. ShadowSwap currently uses the constant product formula for our automated market (AMM) and liquidity pools, ensuring that assets are always deposited in an equal 50/50 split based on the current value of those assets and that all liquidity pools only ever have two tokens in them.
Liquidity pools are often referred to as "trading pairs," because you are combining two tokens to create a liquidity provider token. A liquidity pool of two assets allows you to swap (trade) between those two tokens.
For example:
10 LP tokens are representing 10 SHDW and 10 USDT tokens.
1 LP token = 1 SHDW + 1 USDT
Someone trades 10 SHDW for 10 USDT
Someone else trades 10 USDT for 10 SHDW.
The SHDW/USDT liquidity pool now has 10.015 SHDW and 10.015 USDT.
Each LP token is now worth 1.00015 SHDW + 1.00015 USDT.
Additionally, if you want to dig deeper into the math behind our AMM (the constant product formula) check out Binance's walkthrough here.
Pool APR is the yield you accrue by adding liquidity to a Pool. You earn 0.25% of all trades on this pair proportional to your share of the pool. Fees are added to the pool, accrue in real-time, and can be claimed when you withdraw your Liquidity.
Your share of the Trading Fees will be accrued in real-time and will be paid on top of your existing position when you exit the Liquidity Pool.
Providing liquidity is not without risk, as you may be exposed to impermanent loss (IL).
Simply put, the impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.
If the prices of the two tokens revert back to the same prices when you added liquidity, you won't suffer any IL.
Providing Liquidity to a Pool does come with the risk of Impermanent Loss.
Impermanent Loss occurs when the price ratio of the supplied token pair changes. As a simple rule, the more volatile the assets are in the pool, the more likely it is that you can be exposed to impermanent loss. As the AMM dictates that the total liquidity must remain the same, the ratio is readjusted in order to establish an equilibrium.
The ‘impermanent’ part of IL is an apt description, as the value of the token may yet return to its initial price if it is left in the pool. If the price realigns, then the IL no longer exists, however, if the investor withdraws their funds from the liquidity pool, then the loss is realized fully.
Impermanent loss is caused by a bidirectional change in the value of either one or both tokens within a pair.
The more volatile the underlying tokens are in the pool, the more likely you are to experience Impermanent Loss
Impermanent Loss is not permanent and is only realized when you withdraw from a Liquidity Pool.
Check out Binance Academy's detailed walkthrough on impermanent loss to learn more:
More information Soon
Go to the Liquidity page here.
1.Click 'Add Liquidity'.
2.Select the tokens you wish to add liquidity and enter the amount.
3.Check the details, and click 'Supply'.
4.Check the details, and click 'Confirm Supply'.
5.Confirm the transaction in your wallet.
1.Select the Liquidity Pool to remove.
2.Click 'Remove'.
3.Select the percentage you want to remove or click detailed to enter exact amount to remove.
4.Check the details, and click 'Enable'.
4. After Enabling then click 'Remove'.
Before you can trade, you will need a Core Chain-compatible wallet. You can learn how to get one here. You will also need to have some Core tokens to trade with.
1. Go to the exchange page here.
2. Connect your Core Chain-compatible wallet by clicking Connect Wallet (you can also Connect in the top right-hand corner).
3. Choose the token you want to trade from the dropdown menu in the "From" section. The default setting is CORE.
Whichever token you choose, you will need to make sure you have some to trade with. Your balance is shown above the token dropdown menu.
4. Choose the token you want to trade to in the "To" section as above. Next, type an amount for your "To" currency by clicking inside the input box.
Your "From" currency amount will be estimated automatically. You can also type your "From" amount and have the "To" amount estimate automatically if you like.
5. Check the details, and click the Swap button.
6. A window with more details will appear. Check the details are correct.
When you are ready, click the Confirm Swap button. Your wallet will ask you to confirm the action.
7. Done! You can click View on CoreScan to see your transaction details on the explorer. and also add token information to wallet if its not imported before.
Decentralized exchange is where you can trade one Token for another. There will be thousands of Cryptocurrencies on the Core blockchain and using ShadowSwap Dex, you can discover and trade them with as little as one click and fast transaction execution.
To Trade a Token on the Decentralized Exchange, there must be Liquidity. The liquidity provided to the Exchange comes from Liquidity Providers ("LPs") who stake their tokens in "Pools". In exchange, they get LP (Liquidity Provider) tokens, which can also be staked to earn SHDW tokens in the "farm".
When you make a token swap (trade) on the exchange you will pay a 0.3% trading fee, which is broken down as follows:
0.20% - Paid to liquidity pools in the form of a trading fee for liquidity providers.
0.05% - Sent to the ShadowSwap Treasury.
0.05% - Sent towards SHDW buyback and burn.