What is Soroswap Finance?

Soroswap.Finance is an open-source protocol designed for liquidity provision and token trading on the Soroban blockchain. It operates without the need for intermediaries, ensuring a secure, transparent, and efficient trading environment. The protocol is immutable and built to resist censorship. Development of Soroswap.Finance and its interface is managed by PaltaLabs.

Soroswap.Finance includes:

• Soroswap AMM: An Automated Market Maker that facilitates token swaps and liquidity provision.

• Soroswap Aggregator: An AMM Aggregator that optimizes trading routes across various liquidity pools.

• Soroswap API The Soroswap API serves as the core interface to quote trades by aggregating liquidity from all available Stellar DEXs — including those on Soroban (Soroswap, Phoenix, Aqua) and the Stellar Classic DEX.

How to Use Soroswap.Finance

To interact with Soroswap.Finance, you can mint test tokens, create liquidity pools, provide liquidity, or swap tokens using the Soroswap Interface. Connect your Freighter wallet to perform these actions. Note that transactions on Soroban require Lumens (XLM), so ensure you have test Lumens, which can be obtained from Friendbot.

How Soroswap.Finance Works

Soroswap.Finance functions as an Automated Market Maker (AMM) through a network of smart contracts that standardize liquidity pool creation, liquidity provision, and asset swapping.

• Liquidity Pools: Each pool contains two assets. The pool’s reserves and pricing are managed dynamically by the protocol, updating with each trade.

• Trading: Unlike traditional exchanges, Soroswap does not use a central order book or private matching engines. Instead, reserves are automatically rebalanced, allowing continuous trading without the need for counterparties.

For more detailed information, refer to the Concepts and Getting Started.