Token swaps on Taxi Swap are a simple way to trade one BEP-2 token for another via automated liquidity pools on taxiswap.io
Taxi Swap uses an automated market maker (AMM) model. That means that while you can trade digital assets on the platform, there isn’t an order book where you’re matched with someone else. Instead, you trade against a liquidity pool.
This is the foundation to operate the entire system, so we just want our AMM to focus on 2 pairs of TAXI / BNB, TAXI / BUSD to create the best liquidity for users. In the future, we will create more pair and open the oppurtinity for more LPs to get rewards in our Eco-System.
Those pools are filled with other users’ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees.
One of the main challenges facing users trying to get into Defi, is transaction fees. With the likes of Ethereum, we are seeing transaction fees of up to $10+ to try and get their coins in a liquidity pool and then another $10+ to stake their liquidity tokens. This has led people to look for alternatives outside the Ethereum network. Taxi Swap is a defi on the Binance Smart Chain with TLV of over $100M. It behaves like other Defi’s, allowing users add liquidity to pools and stake their liquidity tokens but has much lower transaction gas fees of less than $0.10. It also has a few other special staking methods that other Defi’s don’t provide. When you make a token swap (trade) on the Taxi Swap exchange you will pay a 0% trading fee