0g-chain/x/swap/spec/01_concepts.md

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# Concepts

## Automated Market Maker

The swap module provides for functionality and governance of an Automated Market Maker protocol. The main state transitions in the swap module include deposits/withdrawals to liquidity pools by liquidity providers and token swaps executed against liquidity pools by users. Each liquidity pool consists of a unique pair of two tokens. A global swap fee set by governance is paid by users to execute trades, with the proceeds going to the relevant pool's liquidity providers.

## SWP Token distribution

[See Incentive Module](../../incentive/spec/01_concepts.md)
Swap module scaffolding and params (#922) * swap module scaffolding * global swap fee * can't think of a reason for begin blocker; removing for abci.go for now; * test pair types; refactor pair name logic; simplify pairs validation and fix stack overflow error * check comparison * use test package * init swap module genesis * add basic marshall tests * remove reward apy from pairs * fix integration helpers * use max swap fee constant; fix validation of swap fee; add tests to cover param validation and param set setup * use noerror over nil * start genesis tests * test param set validation mirrors param validation * add genesis tests * remove print statement * add subtests for genesis test cases; add extra querier test for unknown route; add keeper params testing * add spec * update swagger * find replace hard -> swap in comments * remove unused method * rename pairs to allowed pools; pool is more commonly used, and allowedPool makes it more clear what swap parameter is for. In addition, we won't conflict with Pool data structure for storing a created pool in the store. * remove generated link * missed spec rename * validate token order for allowed pools * fix swagger * json should be snakecase; change allowedPools to allowed_pools Co-authored-by: Nick DeLuca <nickdeluca08@gmail.com> 2021-06-08 15:19:12 +00:00			`<!--`
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			`# Concepts`

			`## Automated Market Maker`

			`The swap module provides for functionality and governance of an Automated Market Maker protocol. The main state transitions in the swap module include deposits/withdrawals to liquidity pools by liquidity providers and token swaps executed against liquidity pools by users. Each liquidity pool consists of a unique pair of two tokens. A global swap fee set by governance is paid by users to execute trades, with the proceeds going to the relevant pool's liquidity providers.`

			`## SWP Token distribution`

			`[See Incentive Module](../../incentive/spec/01_concepts.md)`