iZiSwap V2 model

iZiSwap V2 is an automated liquidity protocol powered by a constant product formula, implemented through a system of non-upgradeable smart contracts on the blockchain. It eliminates the need for trusted intermediaries, emphasizing decentralization, censorship resistance, and security.

Any user can become a liquidity provider (LP) for a pool by depositing an equivalent value of each underlying token. In return, they receive pool tokens representing their share of the total pool reserves, which can be redeemed for the underlying assets at any time.

iZiSwap V2 has been deployed on Base, Linea, Scroll, and Mantle now, and will be extended to more chains in future.

AMM model

In the AMM model, pairs within the pool serve as automated market makers. They facilitate token swaps based on the "constant product" formula, x * y = k, ensuring that the product (k) of a pair’s reserve balances (x and y) remains unchanged through trades. This invariant property ensures that larger trades, relative to reserves, execute at exponentially worse rates than smaller ones.