The Project enables decentralized token swaps using liquidity pools. It allows users to add/remove liquidity and trade ERC-20 tokens with prices determined by a mathematical formula.
The Automated Market Maker (AMM) is a decentralized trading mechanism that allows users to trade assets without the need for order books. Instead, liquidity is provided by users who add tokens to liquidity pools, and trades are made against the reserves of these pools. The price of assets is determined by a mathematical formula, ensuring liquidity at all times.
This contract implements a basic AMM for two tokens, allowing users to add liquidity, remove liquidity, and swap between two ERC-20 tokens. It uses a simple constant product formula (x * y = k) to maintain the balance between token reserves and facilitate trades.