FAQ

## What is QuipuSwap?

QuipuSwap is an Automated Market-Making (AMM) Decentralized Exchange (DEX) on the Tezos blockchain. Apart from swap fees, liquidity providers benefit from rewards distributed by bakers that can be chosen directly by the LP shareholders. More info about QuipuSwap DEX you may find in this article.

## What is the difference between FA1.2 and FA2 standards?

FA1.2 is a single-asset ledger meanwhile the FA2 standard represents a wide range of token types and implementations. They declare different interfaces but serve the same purposes.

## How to exchange tokens?

Go to quipuswap.com and click on the Swap tab:
Chose tokens and amounts to exchange:
Press the Swap button and confirm the transaction in your wallet:

## Can I exchange tokens of different FA standards?

Yes, it is possible. Token-to-token swaps are performed via batch transactions, utilizing XTZ as a middle token i.e. through exchanges from one token to XTZ and from XTZ to the second token.

## Can I transfer my shares?

Yes, shares are FA1.2 or FA2 tokens that implement all the functions stated by the declared interface: TZIP-7/TZIP-12.

## Do I need to vote for the baker?

You may (until you develop some preference and are ready to share your tokens) get to know the reliable bakers. If you are uncertain about the baker, check out this dashboard.

All shareholders receive Baker Rewards proportionally to the shares they hold. More about the QuipuSwap Reward section you may read in this tutorial.

## How to register new token pair?

Go to Invest/Add new token tab and chose the address and initial liquidity amounts.
Once you are satisfied with the rate press the "Add new token" button and confirm the operation:

Go to the Invest/Add new token tab and choose the appropriate address and initial liquidity amounts.
Once you are satisfied with the rate press the "Add new token" button and confirms the operation:

## How are swap prices determined?

The price calculations are based on a Constant Product formula and depend on the provided liquidity rate and fee percentage (currently 0.3%). To learn more, check out Prices and fees.

## How can I get liquidity rewards?

When the user provides his tokens to the pool, he receives share tokens. They have underlying value in the XTZ and FA tokens. Trading operations alter this value as well as the proportion of the tokens it represents. Once the user disinvests his tokens and burns his shares, the user's underlying value is calculated based on the current rate and both XTZ and FA tokens are sent to him. Theoretically, if the exchange prices were close to the market price, the rate would grow and the user would withdraw more tokens than he had invested. Alternatively, if there was a significant difference between DEX and external prices, the arbitrageurs could drain the value and potentially cause an impermanent loss.

## How can I get a baker reward?

Go to the Governance tab and select the appropriate token address.
$shares = sentXTZ * totalShares / tokensInPool \\ sentTokens = shares * tokensInpool / totalShares$
$receivedXTZ = shares * xtzInPool / totalShares \\ receivedTokens = shares * tokensInPool / totalShares$