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Sankoswap

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Last updated 11 months ago

What is Sankoswap?

Sankoswap is an automated liquidity protocol and custom implementation of Uniswap v2 powered by the constant product formula (x * y = k). Each Sankoswap pair manages a liquidity pool made up of reserves of two ERC-20 tokens.

Pairs on Sankoswap are automated market makers that accept one token in the pair (x) for the other (y) so long as the constant product formula is preserved. Under the constant product formula, trades must not change the product (k) of a pair's reserve balances (x and y).

Anyone can provide liquidity for a pool on Sankoswap by depositing an equivalent value of each underlying token in return for pool tokens, which track pro-rata LP shares of the total reserves. LP tokens can be redeemed for the underlying assets at the LP token-holder's discretion.