Noah

Noah Swap is an open source decentralized exchange that allows users to trade freely on the chain. It is a DeFi infrastructure open to everyone. As with most AMMs, trades between specific asset pairs are facilitated by holding reserves of both assets. It sets the transaction price between them based on the size of its reserves, and the price changes with the number of tokens in the pool. Any user is free to join or withdraw from the token liquidity pool, and becoming a liquidity provider or LP will bear part of the transaction risk in exchange for returns.

How do AMMs work?

As long as you deposit two tokens of equal value into a pool, you are a liquidity provider. Traders pay fees to the fund pool, and the fees will be allocated to liquidity providers according to the share of the fund pool as a return for their liquidity. Example: EOS / USDT liquidity pool: We call the EOS share of the fund pool x, and the USDT share y. Noah multiplies these two quantities to calculate the total liquidity of the pool. Let's call it k . The idea behind Noah is that k must remain constant, which also means that the total liquidity in the pool is constant. Therefore, the formula for the total liquidity of the fund pool is: x*y=k

So what happens when someone wants to trade?

Alice uses the EOS/USDE liquidity pool to buy 1 EOS with 10 USDT. In this way, she increases the USDT share of the fund pool and decreases the EOS share of the fund pool. This means that the price of EOS will rise. After the transaction, the EOS of the pool decreases, and we also know that the total liquidity (k) is constant. This mechanism determines the price of the token. Ultimately, the bid price for that EOS depends on how much the ratio between x and y changes for that transaction. Noah is composed of community members and aims to open a new generation of exchanges that are more decentralized and "zero" risk.

In the future, we will explore many possibilities on the new DeFi, including but not limited to: upgrade on the basis of the Uniswap V3 algorithm to provide users with leveraged market-making and leveraged incentive functions; cross-chain DeFi between EOS and EOS EVM Combined with DeFi aggregator functionality, and many other innovations we can dream up. We will do our best to make Noah an innovative and leading DeFi on EOS EVM.