AMM

Pool Types

On YAKA, similar to other decentralized exchanges (DEXs), users can swap tokens for others. The slippage and trade price are determined based on the total value locked in the liquidity pairs and whether arbitrage activities have balanced the pool to its market rate.

YAKA features two types of Liquidity Pools, each with its own swap curve:

• Volatile (UniV2-Style): This is the basic type of pool where tokens are paired with equal weights in terms of dollar value. The volatile swap curve is used to facilitate trades within these pools. The volatile swap curve used is:

$$x*y=k$$

• Correlated (Andre-Style): YAKA utilizes a stable swap curve that is an efficient implementation compared to other DEXs. The stable swap curve, originally devised by Andre, offers near-zero slippage and is designed to honor his innovative approach to stable swaps. The stable swap curve used is:

$$x^{3}y \ +y^{3}x \geq k$$

Swap Fee Structure

85-90% of trading fees go to $veYAKA holders. Default fees:

• Volatile Pair (vrAMM) - 0.18% swap fee

• Correlated Pair (crAMM) - 0.04% swap fee

Fees are adjustable by the YAKA multisig if need be, to ensure the competitiveness and attractiveness for veYAKA holders. The average ranges* of each will be around: - Volatile (0.18-2%) - Correlated (0.01%-0.04%)

*In the event of extreme market volatility, the YakaReserve can hike the fees past the ranges, within reason. The theoretical MIN and MAX for the pair fees is (1<= Fee <= 500bps). This means the minimum fee is 0.01%, and the highest is 5.00%.