⚡Liquidity

Liquidity pools used on the ARMSwap network provide programmed pricing and liquidity.

While ARMSwap cannot directly mint assets like ETH, it utilizes a sophisticated system of liquidity pools to facilitate their cross-chain transfer. These pools, established by ARMSwap, project teams (are we making pools by our own?), or individual users, essentially act as reservoirs of specific assets on various chains.

Those who choose to act as liquidity providers while locking up their ARMSwap tokens are rewarded with a proportional percentage of the fees charged for token exchanges made through the ARMswap's platform.

Create Pools of Your Choice

If a user wishes to trade a specific asset and its pool is not available, we provide users with the freedom to create pools of their choice if they do not already exist. Initially, at the time of launch, we are offering custom pool creation for 20 mainstream blockchains. We aim to continually expand this number in future releases, with the goal of supporting custom pool creation for over 100 blockchains by mid-2025.

Note: Users can claim rewards for regularly maintaining liquidity pools, in addition to receiving their share of swap fees. For further details, please refer to the grants section.

Pool Replenishment

The liquidity pools are replenished through two primary mechanisms:

1. Cross-chain bridge transfers: When users transfer XYZ away from a chain, the corresponding amount is added to the respective pool on that chain.

2. Direct deposits: Users or projects can directly contribute to pools available at ARMSwap, thereby increasing available liquidity. Moreover, users have a liberty to create pools of their choice if they do not exist, primarily.

This system ensures that users can transfer assets across chains while mitigating the risk of insufficient liquidity. The use of LP tokens provides a seamless and transparent experience, ensuring users retain their rightful claim to their assets throughout the process.

Empowering Investors and Liquidity Providers: Rewards and Opportunities in ARMSwap

ARMSwap extends a unique opportunity for investors and liquidity stakers to optimize their capital and reap significant rewards. By participating in the ARMSwap liquidity pool, they can contribute to the smooth functioning of the cross-chain ecosystem and receive a 50% of the share from the fees generated on every successful swap transaction. This revenue stream, proportional to their share in the pool, provides a compelling incentive for investors and liquidity providers to participate actively in the ARMSwap ecosystem.

This incentivizes community engagement and fosters a sustainable economic model for the platform. By rewarding those who contribute to the liquidity pool, ARMSwap ensures efficient cross-chain asset exchange while simultaneously generating attractive returns for its participants. This win-win scenario creates a thriving ecosystem where investors and liquidity providers benefit alongside the entire ARMSwap community.