Swaps

Swaps in a decentralized exchange refer to the direct exchange of one digital asset for another without intermediaries. These transactions are executed automatically by smart contracts on the blockchain, ensuring that each swap adheres to predefined conditions. Most DEX swaps are facilitated by liquidity pools that use an Automated Market Maker (AMM) algorithm to determine exchange rates based on the pool's current asset balances. This mechanism eliminates the need for order books and central intermediaries, providing users with a seamless, trustless, and efficient trading experience. By enabling immediate and secure token exchanges, swaps play a crucial role in maintaining the fluidity and accessibility of decentralised financial markets.

A360 DEX employs on-chain swaps to facilitate seamless trading and interactions between cryptocurrencies and tokenised RWAs on the decentralised exchange. In the protocol, assets are exchanged directly without intermediaries, as smart contracts automatically execute transactions based on predefined conditions. Swaps on A360 DEX are largely supported by liquidity pools that utilise an Automated Market Maker (AMM) algorithm to set exchange rates according to the current asset balances. This approach eliminates the need for traditional order books and central intermediaries, delivering a trustless, efficient, and immediate trading experience while ensuring fluid and accessible market operations.