> For the complete documentation index, see [llms.txt](https://circacoin.gitbook.io/circacoin/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://circacoin.gitbook.io/circacoin/product-guides/amm-swap.md).

# AMM / Swap

CirCaCoin features a powerful Automated Market Maker (AMM) with smart routing technology that ensures users get the best available swap rates, low slippage, and minimal price impact.

## **Smart Liquidity Pools**

CirCaCoin can launch new liquidity pools at any time. These pools are powered by Liquidity Providers (LPs) who supply token pairs (e.g., $CCC and $BNB). In return, LPs receive CCC-LP tokens (CirCaCoin-Liquidity Provider tokens), which represent their share of the pool.

These CCC-LP tokens can be:

* Redeemed at any time for the underlying assets
* Staked in the CirCaCoin farm to earn additional $CCC rewards

## **How It Works:**

1. A user deposits equal values of $CCC and $BNB into the liquidity pool.
2. The user receives CCC-BNB LP tokens in return (e.g., 1 CCCLP = 1 $CCC + 1 $BNB).
3. These LP tokens represent the user’s proportional share of the pooled assets.

## **Transaction Fees & Rewards:**

* Each swap transaction incurs a 0.2% fee
* 0.17% of that fee is redistributed back to the liquidity pool as a reward for LPs
* This incentivizes deeper liquidity and consistent yield for providers

## **Example Scenario:**

* User 1 provides liquidity: 100 $CCC + 100 $BNB = 100 CCCLP tokens
* User 2 swaps 100 $CCC for 100 $BNB
* User 3 swaps 100 $BNB for 100 $CCC
* After both trades, the liquidity pool balance updates to:\
  100.17 $CCC and 100.17 $BNB<br>

Now, each CCCLP token is worth approximately:\
1.00017 $CCC + 1.00017 $BNB

This reflects accrued value from the swap fees, increasing the LP holder’s share over time.<br>