Widhiani: Soku Swap is a Decentralized Exchange (DEX)

Soku Swap is a Decentralized Exchange (DEX)

What is a Decentralized Exchange (DEX)?

You’ll soon be able to trade from one wallet, one DEX but on both the Ethereum Network and the Binance Smart Chain- All courtesy of Soku Swap Exchange.

The Soku Swap Exchange team is delighted to introduce to you a unique decentralized exchange that allows you to trade on both the Ethereum Network and the Binance Smart Chain. The team has been very busy with building a platform that would not only solve the endemic problem of being down right confused on how to use a DEX, but also how we could make learning to trade fun, easy and profitable.

So what is Soku Swap?
Soku Swap is a decentralized exchange that lives on Ethereum Network and the Binance Smart Chain. It uses automated market maker smart contracts to create liquidity pools of both ERC-20 tokens and BEP-20 tokens. This allows users to trade using an algorithm versus an order book used on conventional exchanges. Prices are determined using the formula x*y=k(x coins of token X and y coins of token Y, and always maintains the invariant that x∗y=k for some constant k), and this ensures reserves stay in relative equilibrium. Soku Swap reserves are pooled among liquidity providers who supply the exchange with tokens in exchange for a share of the transaction fee. Soku Swap is its utilizes registry contracts to facilitate exchange between different currencies. The system mechanics ensure trades between cryptocurrencies are based on their relative supply.

Soku Swap Features:
More Ways to Earn

Soku Swap offers many ways for users to earn money. From providing liquidity to trading or taking advantage of abitrage using flash loans. Imagine making arbitrage trades with Pancake Swap or Uniswap for Millions of Dollars using our coins in our easy to use Flash Loan System.

Not Just a Trader Here, You're More Like an Owner

With SOKU, our governance token, you can help decide the future of the exchange. And if you make a few trades each week you'll also get a small portion of the trading volume. The more the exchange grows, the more your payments grow. Plus you get to make decisions about what services should come first. If you stash enough of those SOKU, we might have to get you a parking spot with your name on it.

Two Networks, One Exchange

On Soku Swap, you can make trades on the Ethereum Network and the Binance Smart Chain. Ethereum being the largest decentralized network in the world of blockchain, it's impossible to run an exchange without using it. But along with size comes other problems. Binance Smart Chain came along recently and helped alleviate those issues. With faster trades and lower fees, Binance is definitely one to watch out for. We feel that they are both important and want to make sure our users have the options to make their trades wherever they'd like.

Crypto Classes Are My Favorite!!

Have you ever had to try to explain crypto to somebody? I'm sure you have, we all have. We know it's a headache but we try to educate the people we know because we care about them. Well imagine if you could send them a link to some free crypto classes, and the more classes they do the more you both earn. And don't worry, we'll keep them short and fun. We want to make learning easy and profitable for everybody.

Suko Swap Live Onscreen Chat

What's the one thing people really hate about crypto exchanges? Is it the major lack of customer service? I know that was one of our teams major complaints. So we decided to fix that. We're going to have live chat 24 hours a day to make sure that you never have a question that you can't get answered. No matter where in the world you might be, there will be someone one click away to help if you ever need.

No KYC = Privacy

Centralized exchanges require all customers to fill out forms identifying themselves. You need to provide your name, date of birth, Social Security, blood type, dna sample, etc, etc. You get my drift. Crypto was born to be a decentralized currency that couldn’t be controlled and monitored. With the freedom of the DEX, you just need to connect your wallet and make your trades.

Creating Exchanges
Soku Factory.sol is the smart contract where all the magic happens. It creates exchanges for each trading pair on Soku Swap. The public function createPair()allows any user to deploy an exchange contract for any pair of ERC20 or BEP20 tokens that do not already have one. The code below shows how the exchange is executed.

Lower Gas Fees
Soku swap is designed with gas efficiency at its core. Using the AMM smart contracts we're able to lower gas fees to 10% of normal exchanges. This gas efficiency is replicated in nearly all swaps between supported cryptocurrencies on the platform. Soku Swap has significant gas reductions compared to on-chain order book exchanges. And due to the higher fees on the ETH Network due to the massive recent interest in NFT's, the ability to make swaps on the Binance Smart Chain, allows you to make trades with even lower fees.

Adding Liquidity
Adding liquidity involves putting an equivalent value of either ETH & ERC20 or BNB & BEP20 tokens into the related exchange contract. The first liquidity providers determine the initial exchange rate by depositing what they think is comparable to the coin and tokens value. If the initial rate is low, arbitrage traders will bring the rate to equilibrium at the initial providers' expense.

Removing Liquidity
Liquidity providers can opt to burn their liquidity tokens to withdraw their contributions in the pool. BNB withdrawal is calculated by

bnbWithdrawn=bnbPool(amountBurned / totalAmount)

tokensWithdrawn=tokenPool(amountBurned / totalAmount)

BEP20 tokens and BNB tokens are withdrawn according to the market's prevailing rates, not the rates at the time of investment. This implies some value can be gained or lost due to fluctuations in the market and arbitrage. Fee taken on trades is added to liquidity pools without minting new liquidity tokens.

Liquidity Tokens
Soku Swap liquidity tokens(SOKU LP) represent the provider's contribution to the liquidity pool. They are ERC20 coins or BEP20 tokens, depending on which chain they provided liquidity on. These tokens allow liquidity providers to sell their liquidity or transfer them between accounts without impacting liquidity in pools.

Liquidity tokens are minted and sent to the addresses of liquidity providers. They represent the providers' contribution to a pool. These tokens are highly divisible and can be burned at any time to return a proportional share of the market to the providers. Providers deposit into reserves and mint new liquidity tokens.

The BNB sent to the function determines the number of liquidity tokens minted. The formula below calculates minted tokens

amountMinted=totalAmount(bnbDeposited / bnbPool)

Depositing BNB into reserves calls for depositing an equivalent value of BEP20 tokens as well. Tokens deposited is calculated by the formula

tokensDeposited=tokenPool(bnbDeposited / bnbPool)

Liquidity Earnings
Suko Swap does not charge a platform fee. The trading fee is a low 0.2%, with 0.17% going to the liquidity providers and the remaining 0.03% going to the Soku Swap treasury, where a portion is used for the development, customer service, and user rewards. The swapping fee is immediately deposited into liquidity reserves.

SOKU Token
SOKU is a governance token that allows holders to vote on upcoming upgrades. Soku Swap is a decentralized exchange made for the people, ran by the people, and governed by the people. You'll have the ability to vote on what changes/upgrades you think we should make first.