UBISwap - AMM running on HECO.

UBISwap

AMM running on HECO.

UBISwap is a decentralized trading platform running on Huobi Eco Chain, with lots of other features that let you earn and win tokens.

In the AMM model, the loss of the liquidity provider is essentially the profit earned by the trading user from the liquidity provider. In other words, when the market rises and the overall buying demand is greater than selling, the liquidity provider is actually playing the role of selling, and vice versa. This is a congenital defect in the mechanism of the automatic market-making model. In the form of profit tax, a part of the profit of the trader is automatically deducted through smart contracts and compensated to the liquidity provider, which may be the best way to solve this problem. In addition to the basic transaction fees, the liquidity provider has an additional considerable source of income, and this income does not come from the additional issuance of system tokens, will not cause inflation and harm the interests of other participants.

UBISwap is born to solve the risk of impermanent loss of LP. In simple terms, it compensates liquidity providers by collecting taxes on profitable traders. For every purchase made by a user on the UBISwap platform, the system will automatically mark its cost price. When selling, the contract will calculate whether the sale is profitable.