ICPSwap
  • What Is ICPSwap?
  • One-pagers of ICPSwap
  • Brand Info
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    • Business Partnerships
    • Social Accounts & Communities
  • The (SNS) White Paper of ICPSwap
  • ICPSwap Roadmap (Updated for 2023 and 2024)
  • ICPSwap’s Next-Phase Roadmap and Potential Product Directions (Updated on April 3, 2025)
  • TOKENOMICS
    • How Much Are ICPSwap Fees?
    • ICS
    • ICS Burning Unlimitedly
  • Products
    • Swap(MOR)/Liquidity
      • How to Swap?
      • How to Add Liquidity?
      • How to Increase Liquidity?
      • How to Remove Liquidity?
      • How to Create a New Liquidity Pool?
      • How to Check Your Balances in Swap Pool?
      • What is single-sided liquidity?
    • Limit Order
      • How to Create a Limit Order?
      • Quick Guide: How to Create a Limit Order on ICPSwap
      • How to View or Cancel Your Limit Order?
      • FAQ
    • Farm
      • How to Use Farm to Earn Rewards?
      • How to Create a Farm Pool through a Decentralized Proposal?
    • StaKing Pool
      • How to Use Staking Pool to Earn Rewards?
      • How to Create a Staking Pool through a Decentralized Proposal?
    • Pools
      • How to Create Liquidity Pools?
    • Launchpad
      • How to create the Launchpad?
      • How to participate in the Launchpad?
    • Mint Token
      • How to Mint Token?
    • Token List
      • How to add a token to the Token List?
    • Ads
      • How to Create an Ad?
    • Chat
      • How to Create a Chat Room?
      • How to Join a Chat Room?
    • DAO
    • NFT
      • How to Create NFT Canister?
      • How to mint NFT?
      • How to display your NFTs on Stoic & Plug?
    • WICP
      • How ICP uses the Wrap function?
      • How to Retry Wrap?
    • Wallet
      • How to Create ICPSwap Wallet?
      • How to use Plug Wallet to log in to ICPSwap?
      • How to use MetaMask to log in to ICPSwap?
      • How to import Token into ICPSwap?
      • How to import your ICRC tokens to NNS?
      • What if the seed phrase in ICPSwap Beta can't be imported into ICPSwap 1.0?
      • How to Import Stoic Seed Phrase into Plug
      • Stoic Wallet, Cookies Problem Solution
      • Pop-ups Problem Solution
    • ck-Bridge
      • How to mint/dissolve ckBTC
      • How to mint/dissolve ckETH
      • How to mint/dissolve ckUSDC
      • Trade Bitcoin Runes on Odin.fun in 5 Minutes—Skip Slow Bitcoin Deposits!
    • NNS
      • How to Stake ICS Neuron in NNS
      • How to Use ICS Neurons in NNS
      • How to check the ICS neurons (tokens) from the SNS swap, and Swap $ICS
    • FAQ
  • Legal & Privacy
    • ICPSwap Terms of Service
    • ICPSwap Disclaimer
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  • Transation Fee Allocation of the Range Orders
  • Limit Order Trading
  • So, in the liquidity pool, the systematic process under the hood is:
  • Trading Fee Customization
  • Liquidity

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  1. Products

Swap(MOR)/Liquidity

Token Trading: Market-making with Optional Ranges (MOR)

ICPSwap will adopt the mechanism of "Market-making with Optional Ranges" combined with the low and stable fees and high performance of the Internet Computer. Also, ICPSwap favors liquidity providers the features of Limit-order Trading and "Automatic Withdrawal and Addition of Liquidity".

The market-making mechanism and the trading algorithm are in reference to Uniswap V3, while other functional innovations come into force through the low and stable fees and high performance of the Internet Computer.

Market-making with Optional Ranges was employed because it is currently the most concentrated and active market-making protocol and can significantly improve capital utilization. Due to the mediocre performance of the Ethereum network, it is difficult for Uniswap V3 to provide a limit-order trading function and "automatic withdrawal and addition of liquidity" settings for liquidity providers, as centralized exchanges do. Based on the low and stable fees alongside the high performance of the Internet Computer, ICPSwap can combine the above features to provide users, projects, and LPs with a more user-friendly DeFi trading experience.

Transation Fee Allocation of the Range Orders

If the market price of a trading pair is within a price range, each liquidity provider in that range is allocated transaction fees based on its provided liquidity percentage respectively. By DFINITY's technical ability to run smart contracts at an Internet speed, ICPSwap can quickly calculate the transaction-fee revenue earned by each individual liquidity provider. If the liquidity pool can generate a certain token, such as ICS, the number of tokens mined can also be calculated in a real-time manner.

Limit Order Trading

Compared to Uniswap V3, ICPSwap can execute limit-order trading through the optional-range liquidity mechanism with an automotive liquidity withdrawal function to offer the users almost the same wonderful experience as in centralized exchanges.

For example, suppose that Grace has 500 ICS that she plans to sell out for 50 ICP to take profit when the ICS price surmounts 0.1 ICS/ICP, then:

a. She may submit the limit order with the selling price and amount directly in ICPSwap.

b. Her 500 ICS consequently enters the liquidity pool once she has submitted the limit order successfully.

c. She will exchange 500 ICS for 50 ICP once the liquidity pool price tops the selling price.

So, in the liquidity pool, the systematic process under the hood is:

a. The 500 ICS flows into the liquidity pool of ICS/ICP.

b. As per the MOR Algorithm, the system constructs the appropriate range orders on discrete prices in the ICS/ICP liquidity pool.

c. Set the triggering condition of automatic liquidity withdrawal as all her ICS are all sold for ICP.

d. Specifically, after the price of the ICS token liquidity pool goes beyond the selling price preset and the system verifies the conversion of her 500 ICS to ICP, the system performs the automated liquidity withdrawal operation.

e. Grace secures 50 ICP. Grace has hereto executed a take-profit order by selling her ICS via the limit-order execution mechanism of ICPSwap.

Trading Fee Customization

Each initial liquidity provider can set the liquidity pool trading fee at its will. The initial liquidity provider selects the trading fee gradient (0.05%, 0.1, 0.15% ... 1%) when creating liquidity, with each fee gradient corresponding to a single liquidity pool. Liquidity providers need to establish or choose the most appropriate liquidity pool with the correspondent trading fee, according to such asset-related factors as the price volatility, market trading volume, and trading activities, and take its risk appetite of the impermanent loss into account.

If a user considers that the trading fee of a liquidity pool is unreasonable and against the market demand, the user can create another liquidity pool himself/herself and set another trading fee he/she considers reasonable. In this way, liquidity market makers can choose a more reasonable pool to add liquidity to considering the fee revenue from market-making, asset-exposure analysis, and volume analysis. Users can also select a liquidity pool that better matches their needs based on a trade-off between liquidity adequacy and trading fee.

Regardless of the liquidity pool fee gradient, 80% of the trading fee is rewarded to the liquidity provider, and the remaining 20% ends up being repurchased and burnt in the Repurchase-and-Burn Pool.

Liquidity

Revenue from Liquidity Mining

After adding liquidity, users will receive a reward with some ICS tokens and the corresponding 80% handling fee share. ICPSwap will launch more revenue streams later.

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Last updated 12 months ago

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