PAW Documentation


Introduction to PAW Swap

To exchange your current tokens for others that you prefer, begin by selecting the tokens you currently possess within your wallet. Once you've made your selection, proceed to swap them for the tokens you desire. This functionality allows you to manage your portfolio more effectively, by enabling you to adjust your holdings according to your investment preferences and market conditions. Be sure to review your choices and any potential transaction fees involved before finalizing the swap to make informed decisions about your digital assets.

How Swap Fee Works

The chart describes the flow of a swap fee in a Decentralized Finance (DeFi) system. Initially, a user performs a swap through a Swap Router Program labeled as PAW/BNB. Upon this transaction, a swap fee is generated.

The fee is broken down into two main portions, each constituting 0.25% of the total. The first 0.25% is directed to the Treasury (60%) and the Developers (Dev) (40%). The second 0.25% is distributed among Pool Participants according to their pool share.

After the transaction, the user receives an amount labeled "10 BNB" from the "Received" phase. The entire system operates on a total swap fee of 0.5%.

When calculating the fees, we have to consider Treasury and developers' reward (α), Validator rewards (β), pool participants (γ), Validator liquidity percentage (δ), and Delegator liquidity (θ).

This is how pool share collectors handle shares:

Liquidity Pools are smart contracts that hold reserves of two tokens, allowing users to trade between them. By adding liquidity, you contribute to the pool and receive liquidity provider (LP) tokens representing your share. LP tokens can be redeemed for your portion of the pool's assets, along with a share of the trading fee. You can see your pool share percentage at the bottom of the page.