Swap

A token swap is an agreement between two parties that exchange different token types (say token A and token B). In a token swap, one party will pay a certain amount of token A to the other party and receive the agreed amount of token B in return.

On Swap, there is no central party making trades. It does not use centralised market makers, nor an order book (which are a feature of centralised crypto exchanges). Instead, it features automated liquidity. The Swap model revolves around liquidity providers lending their crypto tokens to create liquidity pools.

Swap facilitates the instant exchange of two tokens in a blockchain protocol without the need of commencing the traditional crypto-to-fiat exchange or token migration. It allows users to swap tokens directly from the official private key wallet or the trading account. In-wallet exchange offers multiple benefits for the traders, such as non-custodial trading, on-chain exchange and faster transactions.

Absolutely any ERC20 token can be listed on Swap no permission required. Each token has its own smart contract and liquidity pool. If one doesn't exist, it can be created easily adding liquidity.

The liquidity providers provide liquidity by adding crypto tokens in pairs to smart contracts which can be bought and sold by others. In return, liquidity providers receive a percentage of the trading fees.