AquaSwap

A Rust-based Automated Market Maker (AMM) implementing liquidity pools and token swap functionality.

Features

  • Liquidity pools: Deposit assets and earn fees from swaps
  • Deterministic pricing: Constant-product formula (x*y=k)
  • Permissionless listing: Create new trading pairs
  • Composable design: Built to integrate with other DeFi primitives

Technical Highlights

  • Implements invariant-preserving swap logic
  • Uses fixed-point arithmetic to avoid floating-point inaccuracies
  • Carefully designed state transitions to prevent pool imbalance
  • Optimized storage layout for frequent swap operations

Why AMMs?

Automated Market Makers remove the need for order books, enabling fully on-chain, permissionless liquidity. Deterministic pricing and invariant enforcement make them ideal for decentralized execution environments.