Swap

A permissionless and decentralised way to swap tokens

Arkadiko Swap is our implementation of a Decentralized Exchange on top of the Stacks blockchain.

Drawing inspiration from industry titans such as Uniswap and Curve, we have added functionality that enables the swapping of SIP10-tokens through an Automated Market Maker model.

Arkadiko Swap only supports liquidity pools with uncorrelated assets.

A user that wishes to supply liquidity to such a pool needs to provide STX tokens and USDA tokens of equal value to the pool. He then receives LP (Liquidity Provider) tokens that represent his share of the pool. Trading fees will automatically accrue in the pool and are distributed pro rata the share of each individual that holds LP tokens. Some pools on Arkadiko Swap might be eligible for DIKO emissions, given as incentive to increase the amount of liquidity in the pool.

Arkadiko Swap was the first DEX on the Stacks blockchain. An absolutely crucial component back in the day when no other protocols were available. For liquidity pools with correlated assets, we have chosen to integrate the Bitflow protocol. Swapping in their pools will be made available through the Arkadiko Swap front-end, but will use smart contracts not native to Arkadiko itself.

Arkadiko Swap creates opportunities for passive income by providing liquidity to pools and collecting trading fees. On top of regular trading fees, the DIKO Governance token is given as a liquidity mining reward for liquidity providers, greatly increasing the yield and profitability of the capital supplied.