Comment on page
Megaton Finance is an instant swap protocol that operates with an on-chain liquidity pool, where liquidity is guaranteed by automated market-making (AMM) mechanisms. It is an on-chain swap service that allows anyone that has any WTON or oToken-type cryptocurrency to become a liquidity provider and earn income from transaction fee commissions.
- Trader: By paying a fee to the Megaton Finance pool, traders can instantly swap tokens. Token prices fluctuate during a trade according to the quantity (exchange ratio) of paired assets deposited in the pool.
- Liquidity Provider: It refers to users who deposit a pair of two tokens in the Megaton Finance pools for yields. If providing liquidity, liquidity providers will receive an LP (Liquidity Provider) token, MEGA as a supply certificate. They will receive a reward share of the fees from that respective pool as a contribution reward.
Note that slippage (a difference in the estimated price at the point of transaction and the actual price at the time of transaction) may occur in AMM-based swap protocols. In addition, a liquidity provider may experience Impermanent Loss (change in the price of deposited assets compared to when they are deposited) as token prices in pools are adjusted by an AMM mechanism after the point of supply. Please keep these risks in mind when providing liquidity or conducting transactions.