• Logic Flow

Current swap functioning

Sure! Here are the equations broken down into separate lines:

1. Constant Product Formula (Liquidity Pool):

   • x * y = k

   • x and y represent the quantities of two tokens in a liquidity pool.

   • k is the constant product of the token balances.

2. Swap Formula (Token Amounts and Prices):

   • x1 * y1 = x2 * y2

   • x1 and y1 are the initial token quantities before the swap.

   • x2 and y2 are the final token quantities after the swap.

These equations play a crucial role in the functioning of Uniswap's decentralized exchange by ensuring that the product of token balances remains constant and that token swapping is efficient and maintains liquidity.

Here are the simplified equations for our swap 2.0 router that takes fees in ETH or BNB on the router level, eliminating the need for smart contracts that incur taxes on token sales:

Fee Calculation (ETH):

fee_eth = amount_eth * fee_percentage_eth

fee_eth represents the fee amount in ETH.

amount_eth is the value of the transaction in ETH.

fee_percentage_eth is the predetermined fee percentage for ETH transactions.

Fee Calculation (BNB):

fee_bnb = amount_bnb * fee_percentage_bnb

fee_bnb represents the fee amount in BNB.

amount_bnb is the value of the transaction in BNB.

fee_percentage_bnb is the predetermined fee percentage for BNB transactions.

By incorporating fees at the router level in the form of ETH or BNB, this approach eliminates the need for smart contracts that incur taxes on token sales. Users can calculate the fees based on the transaction value and the predetermined fee percentage for the respective cryptocurrency.