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Token Swap (AMM/DEX)

Decentralized exchange powered by constant product formula

Overview​

The Ethereal Offering AMM (Automated Market Maker) allows you to swap between ETHO, PSD, and other tokens without a centralized exchange. we can:

  • Swap tokens instantly at algorithmic prices
  • Provide liquidity to earn trading fees
  • View pool analytics and our position
  • Track transaction history on-chain
  • Earn passive income from liquidity provision

Core Principle:

Reciprocity — The exchange flows both ways, creating mutual benefit

What is an AMM?​

An Automated Market Maker (AMM) is a decentralized exchange protocol that uses a mathematical formula to price assets and facilitate trades without order books or centralized intermediaries.

How It Works​

Constant Product Formula: x * y = k

  • x = Amount of Token A in the pool
  • y = Amount of Token B in the pool
  • k = Constant product (stays the same after trades)

Example:

  • Pool has 1,000 ETHO and 10 ETH
  • k = 1,000 × 10 = 10,000
  • If you buy 100 ETHO, you must add enough ETH to keep k = 10,000
  • Price adjusts automatically based on supply/demand

Benefits​

✅ No intermediaries — Trade directly from our wallet
✅ Always available — 24/7 liquidity
✅ Transparent pricing — Algorithm-based, no manipulation
✅ Earn fees — Liquidity providers earn 0.3% of all trades
✅ Permissionless — Anyone can trade or provide liquidity

How to Swap Tokens​

Step 1: Navigate to Token Swap​

  1. Go to the Token Swap page in the dApp
  2. Ensure our wallet is connected
  3. Check our token balances (displayed in interface)

Step 2: Select Tokens​

Swap Interface:

  • From: Select token you want to swap (e.g., ETH)
  • To: Select token you want to receive (e.g., ETHO)
  • Amount: Enter how much you want to swap

Available pairs:

  • ETH ↔ ETHO
  • ETH ↔ PSD
  • ETHO ↔ PSD
  • (Additional pairs may be added via DAO governance)

Step 3: Review Swap Details​

Before confirming, review:

  • Exchange Rate: How much you'll receive per token
  • Price Impact: How much our trade affects the pool price
  • Minimum Received: Accounting for slippage
  • Liquidity Provider Fee: 0.3% of swap amount
  • Gas Fee: ETH cost for transaction

Price impact warnings:

  • < 1% — ✅ Good trade
  • 1-3% — ⚠️ Moderate impact
  • 3-5% — ⚠️ High impact, consider smaller amount
  • > 5% — 🚫 Very high impact, split into multiple trades

Step 4: Set Slippage Tolerance​

Slippage = Difference between expected and actual price due to market movement

Settings:

  • 0.1% — Very tight, may fail in volatile markets
  • 0.5% — Recommended for stable markets
  • 1.0% — Recommended for normal conditions
  • 3.0% — High tolerance, use for large trades or volatile markets
  • Custom — Set our own percentage

Note: Higher slippage = more likely to succeed, but we might get a worse price.

Step 5: Confirm Swap​

  1. Click "Swap" button
  2. Review transaction in wallet popup
  3. Confirm transaction
  4. Wait for confirmation (usually 15-60 seconds)
  5. Tokens appear in our wallet

Transaction details:

  • From: Our wallet address
  • To: AMM contract address
  • Tokens sent: Amount you're swapping
  • Tokens received: Amount you'll get (minus fees)
  • Gas fee: ETH cost

How to Provide Liquidity​

Why Provide Liquidity?​

Earn passive income by depositing tokens into liquidity pools:

  • Trading fees: Earn 0.3% of every swap that uses our liquidity
  • Proportional rewards: Our share = our % of total pool
  • Compounding: Fees automatically added to our position
  • Community support: Help others trade smoothly

Example:

  • You provide $1,000 of liquidity (50% ETHO, 50% ETH)
  • Pool has $100,000 total liquidity
  • Our share = 1%
  • Pool earns $10,000 in trading fees per month
  • You earn $100 per month (1% of $10,000)

Step 1: Navigate to Liquidity​

  1. Go to Token Swap page
  2. Click "Liquidity" tab
  3. View available pools

Step 2: Select Pool​

Available pools:

  • ETHO/ETH — Primary pool
  • PSD/ETH — Secondary pool
  • ETHO/PSD — Direct swap pool
  • (Additional pools may be added)

Pool info displayed:

  • Total Liquidity: Total value locked in pool
  • Volume (24h): Trading volume last 24 hours
  • Fees (24h): Fees earned last 24 hours
  • APR: Estimated annual percentage return
  • Our Share: Our % of the pool (if you're already providing)

Step 3: Add Liquidity​

  1. Click "Add Liquidity" on desired pool
  2. Enter amount of first token (e.g., 100 ETHO)
  3. Second token amount auto-calculates to maintain pool ratio
  4. Review the amounts and ratio
  5. Click "Approve [Token]" (first time only)
  6. Wait for approval transaction to confirm
  7. Click "Add Liquidity"
  8. Confirm transaction in wallet
  9. Receive LP tokens (liquidity provider tokens) representing our share

Important:

  • You must provide equal value of both tokens
  • Ratio is determined by current pool price
  • You'll receive LP tokens representing our share
  • LP tokens can be redeemed anytime for our share of the pool

Step 4: Track Our Position​

Our Liquidity Position:

  • Pool: Which pool you're in
  • Our Share: % of total pool
  • Tokens Deposited: Amount of each token
  • Current Value: USD value of our position
  • Fees Earned: Total fees accumulated
  • APR: Our current annual return rate

View in:

  • Token Swap page → Liquidity tab → Our Positions
  • Wallet → LP tokens (ERC-20)

Step 5: Remove Liquidity (When Ready)​

  1. Navigate to Our Positions
  2. Click "Remove" on the position
  3. Choose percentage to remove (25% / 50% / 75% / 100%)
  4. Review tokens you'll receive
  5. Click "Remove Liquidity"
  6. Confirm transaction
  7. LP tokens are burned
  8. You receive our share of both tokens + accumulated fees

Note: we can remove liquidity anytime. No lock-up period.

Understanding Impermanent Loss​

What is Impermanent Loss?​

Impermanent loss occurs when the price ratio of our deposited tokens changes compared to when you deposited them.

Example:

  • You deposit 100 ETHO + 1 ETH when 1 ETH = 100 ETHO
  • ETHO price doubles (now 1 ETH = 50 ETHO)
  • Pool rebalances automatically
  • You now have ~70.7 ETHO + ~1.41 ETH
  • If you had just held, you'd have 100 ETHO + 1 ETH (worth more)
  • The difference is "impermanent loss"

Why "Impermanent"?​

  • Loss is only realized when you withdraw
  • If prices return to original ratio, loss disappears
  • Trading fees often offset impermanent loss
  • Long-term providers usually profit despite IL

How to Minimize​

  1. Provide to stable pairs — Less price volatility = less IL
  2. Long-term provision — Fees accumulate over time
  3. High-volume pools — More fees to offset IL
  4. Monitor our position — Remove if IL becomes significant
  5. Understand the risk — Only provide what we can afford

Rule of thumb: If trading fees > impermanent loss, you're profitable.

Pool Analytics​

Global Pool Stats​

Visible on Token Swap page:

  • Total Value Locked (TVL): Total $ value in all pools
  • 24h Volume: Total trading volume last 24 hours
  • 24h Fees: Total fees earned by LPs last 24 hours
  • Total Transactions: All-time swap count

Individual Pool Stats​

For each pool:

  • Liquidity: Total tokens in pool (e.g., 10,000 ETHO + 100 ETH)
  • Volume (24h): Trading volume
  • Fees (24h): Fees earned
  • APR: Estimated annual return for LPs
  • Price: Current exchange rate
  • Our Share: Our % of pool (if providing)

Our Transaction History​

Track all our swaps and liquidity actions:

  • Date/Time: When transaction occurred
  • Type: Swap, Add Liquidity, Remove Liquidity
  • Tokens: What you traded or deposited
  • Amount: How much
  • Transaction Hash: Link to block explorer
  • Status: Confirmed, Pending, Failed

Advanced Features​

Limit Orders (Coming Soon)​

Place orders at specific prices:

  • Set our desired exchange rate
  • Order executes automatically when price is reached
  • No need to monitor constantly

Liquidity Mining (Potential)​

Earn additional rewards for providing liquidity:

  • Bonus ETHO or PSD tokens
  • Distributed based on our share and duration
  • Incentivize liquidity for new pools
  • Governed by DAO proposals

Multi-Hop Swaps (If Needed)​

Swap through multiple pools for best price:

  • Example: ETH → ETHO → PSD (if direct ETH/PSD pool has low liquidity)
  • Automatically routes through best path
  • May have higher fees (multiple swaps)

Best Practices​

For Swapping​

  1. Check price impact before large trades
  2. Split large trades into smaller chunks if impact > 3%
  3. Set appropriate slippage (0.5-1% for normal conditions)
  4. Compare prices with other DEXs if available
  5. Verify token addresses to avoid scams

For Liquidity Provision​

  1. Start small to learn the mechanics
  2. Understand impermanent loss before providing
  3. Choose high-volume pools for better fee earnings
  4. Monitor our position regularly
  5. Reinvest fees by adding more liquidity (compound)
  6. Diversify across multiple pools if possible
  7. Long-term mindset — Fees accumulate over time

Security​

  1. Never share our private keys or seed phrase
  2. Verify contract addresses before approving
  3. Use hardware wallet for large amounts
  4. Revoke approvals for contracts you no longer use
  5. Be cautious of phishing sites (bookmark the real dApp)

Troubleshooting​

"Insufficient liquidity for this trade"​

Solution:

  • Pool doesn't have enough tokens for our swap size
  • Try a smaller amount
  • Provide liquidity to the pool yourself
  • Wait for others to add liquidity

"Price impact too high"​

Solution:

  • Our trade is too large relative to pool size
  • Split into multiple smaller trades
  • Wait for pool to grow
  • Increase slippage tolerance (with caution)

"Transaction failed"​

Possible causes:

  • Slippage tolerance too low (price moved during transaction)
  • Insufficient ETH for gas
  • Token approval not confirmed
  • Pool parameters changed

Solution:

  1. Increase slippage tolerance
  2. Ensure enough ETH for gas
  3. Confirm approval transaction first
  4. Try again

"I can't remove my liquidity"​

Solution:

  1. Ensure you have LP tokens in our wallet
  2. Check if tokens are staked elsewhere
  3. Verify you're on the correct network
  4. Contact support if issue persists

Fee Structure​

Trading Fees​

  • 0.3% of every swap goes to liquidity providers
  • 0.0% protocol fee (may be added via DAO governance)

Example:

  • You swap 100 ETHO for ETH
  • Fee = 0.3 ETHO
  • You receive ETH equivalent to 99.7 ETHO
  • 0.3 ETHO distributed to all LPs proportionally

Gas Fees​

  • Swap: ~50,000-100,000 gas (varies by network congestion)
  • Add Liquidity: ~100,000-150,000 gas
  • Remove Liquidity: ~80,000-120,000 gas
  • Approve Token: ~45,000-60,000 gas (one-time per token)

Tip: Trade during low-traffic times for lower gas fees.

Next Steps​

Now that you understand the AMM/DEX:

  1. Try a small swap to get comfortable
  2. Consider providing liquidity if you hold both tokens
  3. Monitor pool analytics to find best opportunities
  4. Track our positions and fees earned
  5. Participate in DAO to propose new pools or features

Ready to participate in the crowdsale? → Continue to Sacred Offering (Crowdsale)

Want to see the project roadmap? → Jump to Roadmap & Community