Liquidity Pools

DipCoin DEX utilizes Automated Market Maker (AMM) technology powered by the Constant Product Formula (x * y = k). This mathematical model creates self-balancing liquidity pools that automatically:

• Determine Prices Algorithmically - Token exchange rates adjust dynamically based on the ratio of assets in each pool

• Maintain Continuous Liquidity - Smart contracts ensure trading availability by preserving the constant product (k) of token quantities

• Enable Efficient Swaps - Each trade smoothly shifts the pool's asset balance while keeping the product of reserves constant

The AMM system provides: ✅ Automated price discovery through reserve ratios ✅ Non-custodial liquidity fully controlled by smart contracts ✅ Seamless trading experience without intermediaries ✅ Fair fee distribution to liquidity providers

By participating in DipCoin's AMM pools, users contribute to decentralized markets where pricing and liquidity follow transparent, mathematical principles.