Method y=k*x
BlazeSwap utilizes the constant product formula, often expressed as y=k*x, which underpins the functionality of automated market makers (AMMs) in decentralized exchanges. This formula ensures that the product of the quantities of two tokens in a liquidity pool remains constant. When a trade is executed, the quantities of the tokens are adjusted in a way that preserves the constant product, enabling the exchange of one asset for another while maintaining liquidity in the pool.
This mathematical foundation ensures that trades on BlazeSwap are executed efficiently and fairly, providing liquidity to the market while allowing users to swap tokens effortlessly.
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