Open pools

A pair of ERC20 tokens can be traded in each Flashliquidity AI pool.

Because each token's balance in a pool contract is initially 0, someone must seed the pool with an initial deposit of each token before it can begin facilitating trades.

he initial price of the pool is determined by this first liquidity provider.

There is a motivation for liquidity providers to add both tokens with equal value to the pool. If the initial liquidity provider deposits tokens at a ratio differing from the current market rate, this would immediately create a profitable arbitrage opportunity that would likely be taken advantage of by a third party.

Unique tokens known as liquidity providers tokens (LP tokens) are created and transferred to the provider's address whenever liquidity is deposited into a pool.

These coins represent the contribution to a pool made by a certain liquidity provider. The number of liquidity tokens the provider receives is based on the percentage of the pool's liquidity that is delivered.

he quantity of liquidity tokens that the provider will receive if they are creating a new pool is equal to sqrt(x * y), where x and y stand for the quantity of each token offered.

Every time a trade happens, the transaction sender is charged a 0.3% fee.

Upon the completion of the trade, the fee is distributed proportionally to each liquidity providers in the pool.