Axiome Swap
Axiome Swap: trade tokens on the Axiome Chain, create liquidity pools in just 2 clicks, and start earning rewards today!
Axiome Swap is a spot AMM exchange for tokens issued on Axiome Chain, forming part of the Axiome Trade ecosystem cluster. This product offers a particularly user-friendly interface and a well-designed economy.
Axiome Swap is one of the key sources of funding for the Community Pool - 20% of all collected trading fees go into the pool and are then distributed among AXM stakers and RET token holders.
In fact, there are only two user roles on Axiome Swap:
Traders - those who buy or sell assets on Axiome Swap. For these users, two sections are relevant: "Swap" and "Tokens".
Liquidity providers - either token creators who set up a liquidity pool (for example, $TOKEN/AXM) to allow their audience to buy or sell the token, or holders of various tokens who decide to earn additional income by providing these tokens as liquidity to pools in order to receive their share of trading fees. For these users, two other sections are relevant: "Positions" and "Pools".
By understanding this division of roles, it will be easier for you to read this document if you are new to the field.
How to swap assets on Axiome Swap?
To swap assets, follow a few simple steps:
Step 1. Open the Axiome Trade app and go to the “Swap” section:
Step 2. Connect your wallet through the Axiome Wallet app.
Step 3. Select the asset to sell and the asset to buy from the list by tapping the asset icon in each field.
Step 4. Enter the selling amount in the “Selling” field or the buying amount in the “Buying” field.
Step 5. Click the “Swap” button.
Step 6. Open the Axiome Wallet app and confirm the transaction in the automatically opened window.
Done! ✅
How is the swap fee formed?
The swap fee structure is as follows:
When creating a pool, the creator sets the base fee level.
The contract automatically calculates an additional 20% of the pool creator’s fee.
The contract aggregates the total fee (base + 20%), which is shown to the trader in the swap details at the time of exchange.
Features of working with liquidity pools
1. How to create a liquidity pool?
To create your own liquidity pool (a new market), go to the “Pools” section, click the “Create pool” button, and follow these steps:
Step 1. At this stage, you need to define the pair and the fee level.
The “Base asset” field refers to the asset for which the market is being created - in most cases, this is the token you have issued yourself.
The “Quote asset” field specifies the asset that defines the value of the base one - at this stage, AXM will be automatically selected.
In the fee selection field, follow the recommendations in the dropdown menu. The higher the fee, the more liquidity providers earn from your pool. However, it’s important to maintain a balance between attractiveness for liquidity providers and traders.
Step 2. Next, you need to set the starting price of the base asset in AXM and choose the price range in which your liquidity will operate.
The price setup depends on the goals of your project - the lower the starting price, the fewer AXM are required to create the pool and support price growth, and vice versa.
Step 3. The final step is to provide the initial liquidity for your new pool by depositing two assets to create the market.
Enter the amount of the base asset - the AXM value will be automatically calculated based on two criteria:
The price you set.
The requirement to maintain a 1:1 value ratio between both assets.
Click “Complete.” A “Preview Deposit” window will open - double-check the entered information, and if everything is correct, click “Confirm deposit.”
Done! 🎉 Congratulations on creating a new market.
2. Steps for adding liquidity
Step 1. To start earning by providing liquidity to pools, go to the “Pools” section and choose the market where you want to add liquidity.
Step 2. Open the selected pool’s page. Here you’ll find key historical statistics, the pool’s balances and their proportions, as well as the total rewards earned by the pool.
Step 3. Scroll down a bit to find the liquidity provision section.
Step 4. Enter the amount in either asset - the value of the second asset will be automatically calculated based on the current base asset price in AXM.
Click “Create Position.” A “Preview Deposit” window will appear. Double-check all entered data, and if everything is correct, click “Confirm deposit.”
Done! ✅
3. How are fees distributed among liquidity providers?
To understand how the liquidity pool’s earned fees are distributed, it’s important to first understand how liquidity itself is provided:
When you create a liquidity pool or add liquidity to an existing one, LP tokens (liquidity provider tokens) are minted in proportion to the value of the liquidity you contribute relative to the total pool value. Simply put, LP tokens are a digital confirmation that you have supplied liquidity to a specific pool.
Step-by-step process of LP token issuance:
When your liquidity provision transaction is confirmed, your tokens are sent to the pool’s smart contract.
The contract records how much liquidity was in the pool before your deposit and calculates your proportional share.
Immediately after adding liquidity, LP tokens are automatically issued to you in the amount that reflects your proportional share of the pool.
You can find your LP tokens after providing liquidity in the block explorer on your wallet page under the “Asset” tab. LP tokens are labeled as: WasmSwap_Liquidity_Token.
4. How your income in the pool is formed?
Each time buy and sell trades pass through the pool, a trading fee (for example, 1%) is added to the pool. These fees are not distributed immediately but instead increase the total amount of tokens within the pool.
This means your share in LP tokens remains the same, but the value of each LP token increases because the pool has grown in size.
Therefore, when you withdraw, you receive more assets than you initially deposited - provided that a significant number of trades have occurred.
To compare how much liquidity you originally supplied versus the current valuation of your liquidity, pay attention to the “Deposit Value” and “Current Value” indicators in your position details:
Deposit Value — the valuation of your assets at the moment they were added to the pool. After adding or removing liquidity from an existing position, this indicator is adjusted.
Current Value — the current valuation of your share in the pool, expressed in USD.
In other words, to determine your income, simply subtract Deposit Value from Current Value - the difference represents your actual profit.
5. Liquidity removal
In practice, you send your LP tokens back to the pool contract via a transaction.
The contract burns your LP tokens.
In return, you receive your proportional share of the pool’s assets (including your portion of accumulated trading fees).
Important:
When withdrawing liquidity from a pool, you must understand that even if your share has increased in value, you will not withdraw assets in the same proportions as when you supplied them - due to pool rebalancing.
Managing positions
1. How to manage a position?
Managing a position involves two scenarios:
Adding liquidity.
Removing liquidity.
To manage your position, go to the “Positions” section and click the “Manage” button next to the selected position. After that, a window will open with two tabs: “Add” and “Remove.”
To increase your position size, open the “Add” tab, enter the amount of one asset - the value of the second asset will be filled in automatically - and then confirm the transaction.
To remove liquidity from a position, open the “Remove” tab, enter the amount of liquidity you want to withdraw, and confirm the transaction.
2. How to share a position?
To share the performance of your position, go to the “Positions” section and click the “Share” button next to the selected position.
You’ll be prompted to download an image showing your position’s performance.
Share your results with friends or on social media and grow within the partnership program. At the bottom of the image, your nickname and a QR code for downloading the Axiome Wallet app will be displayed.
Types of slippage and their settings
Slippage is the difference between the price at which you expected to execute a transaction and the price at which it was actually executed.
Causes:
Low pool liquidity.
Trade volume too large relative to the pool size.
Price change during transaction confirmation.
High asset volatility.
In Axiome Swap, there are two types of slippage:
When swapping assets.
When providing liquidity to a pool.
In both cases, you can set a maximum slippage tolerance by clicking the settings icon:
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