🛳️SEA Dex

SEA Dex is an exchange medium that works with its own AMM smart contracts on the SEI network. SEA Dex has 3 layers of pools, these are Surface Pools, Deep Pools, and Permissionless Pools.

Permissionless Pools

-Permissionless Pools allows anyone to create a new pair for their CW20 tokens or any IBC coins without any coding requirements. Creator and liquidity provider fee rates for permissionless pools are determined by the creator. In this way, project owners will be able to benefit from the success of their projects and fund themselves without selling their token allocations. Thereby, this feature creates a win-win situation for both the user and the project.

Surface Pools

-Surface Pools are AMM contracts with the structure x*y = k equation. In Surface Pools, you can trade cw20 tokens in the SEI network and IBC coins in COSMOS with the lowest fee possible.

Deep Pools

-Deep Pools are specially created exchange mediums for LP tokens which allow users to easily change their capital and provide a wider arbitrage opportunity.

What are LP tokens?

Liquidity provider tokens or LP tokens are tokens issued to liquidity providers on a decentralized exchange (DEX) that runs on an automated market maker (AMM) protocol.

LP tokens are used to track individual contributions to the overall liquidity pool, as LP tokens held correspond proportionally to the share of liquidity in the overall pool.

At the most basic level, LP tokens work on the following formula:

Total Value of Liquidity Pool / Circulating Supply of LP Tokens = Value of 1 LP Token

LP tokens of all Dexs in the COSMOS, POLYGON, and BSC networks can be traded in SEA Dex Deep Pools.