How Does Soup Swap Work?
Soup Swap is a permissionless decentralized protocol, operating in between on the formula: A * B = C
• A is the amount of token A • B is the amount of token B • C is the total value of pool A-B
When C changes, the values of tokens A and B will not change => A and B will change.
When A and B change, but C does not change => The value of tokens A and B must change.
For C to change, A and B would need to be changed by liquidity providers (LP)
For A and B to change, it will take the influence from investors through Swap.
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