Zionswap - Polyland DEX

The metaverse's one-stop shop for ZION token swaps
In the current state of affairs of the metaverse, users will need to connect to a third party Dapp in order to transfer value from crypto-fiat and vice-versa. PolyLand is changing that rhetoric by integrating an Automated Market Maker (AMM) which is the core of a decentralised exchange.
AMMs are part of the decentralised finance (DeFi) ecosystem. They allow digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers.
Zionswap will grant users the ability to swap ZION for other digital assets seamlessly. The best part is that users will never have to leave the Polyland ecosystem to carry out these operations.
AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula. The most common one was proposed by Vitalik as:
balance(tokenA)balance(tokenB)=kbalance(tokenA) * balance(tokenB) = k
and popularised by Uniswap as:
xy=kx * y = k
The constant, represented by “k” means there is a constant balance of assets that determines the price of tokens in a liquidity pool. This means that the pool’s total liquidity always has to remain the same.

Liquidity Pools

You can think of a liquidity pool as a big pile of funds that traders can trade against. These funds are locked into a pool and available to traders to interact with. Liquidity providers (LPs) add funds to liquidity pools. Liquidity providers add funds to liquidity pools. In return for providing liquidity to a protocol, LPs earn fees from the trades that happen in the pool. LPs will also be given other incentives as a reward for propping up the reward pool and making it resilient to large transaction volumes. The primary asset pair (ZION:X) in the liquidity pool will be announced later.
Polyland will bootstrap the liquidity pool by adding an initial liquidity. The integrity of the liquidity pool is guaranteed as the bootstrapped LP tokens will be locked forever in the pool.

Transaction Fees

Transaction fees collected from trades executed on Zionswap will be redistributed to liquidity providers along with extra incentives released from the initial token allocation for liquidity. Liquidity providers get 0.3% commissions from each swap operation in their pool. These fees are paid out to the liquidity providers according to their percentage of the pool.