# Swap

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Terraport Swap is an Automated Market Maker (AMM) protocol based on constant products liquidity pools and implemented through smart contracts on the Terra Classic blockchain. The protocol enables decentralized on-chain exchanges of different Terra Classic ecosystem assets.

Terraport Swap uses constant product pools. This type of pool is a good choice for high volatility token pairs (e.g. $LUNC-$USTC), as it facilitates trading even during large and sudden market movements, also adapting to primary markets, where it happens more frequently that traders speculate and act on outside information, despite high slippage.

### **Trading on Terraport exchange**

1. Go to the exchange page
2. Connect your wallet by clicking **"Connect Wallet"**
3. Choose the token you want to trade from the menu in the upper section. Whichever token you choose, you will need to make sure you have a sufficient amount of them in your wallet to trade with.&#x20;
4. Choose the token you want to trade to in the lower section.
5. Set your proper slippage tolerance, and click the **"Confirm Order"** button and sign the transaction on TerraStation wallet ( make sure you have enough $LUNC to pay the gas fees ).

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## **Standard Trading Fees**

All authorized pairs in Terraport's  pools have a trading commission rate outside the spread applied by the pricing algorithm. The commission is set at 0.3% for each trade and will be deducted from the transaction of the asset received by the trader.

<table data-full-width="false"><thead><tr><th align="center">STANDARD TRADING FEES</th><th align="center">0.3%</th></tr></thead><tbody><tr><td align="center">Liquidity Providers</td><td align="center">0.22%</td></tr><tr><td align="center">Terraport Treasury</td><td align="center">0.08%</td></tr></tbody></table>

## Recovery Fees

Currently transaction fees are set above the standard trading fees to include a temporary commission rate increase to 2% for each trade which will be deducted from the transaction of the asset received by the trader. This is a temporary fee that is intended to be reduced to 0.3% (0.08% treasury 0.22% liquidity providers) after the completion of the recovery plan and subject to governance approval.

| TEMPORARY TRADING FEES |   2%  |
| :--------------------: | :---: |
|   Liquidity Providers  | 0.22% |
|  Terraport Treasury\*  | 1.78% |

This will allow Terraport Swap to operate safely at all times, reward liquidity providers and burn up the circulating supply of $TERRA and $LUNC through the treasury.

## Where will Treasury fees be sent?

|     TERRAPORT TREASURY\*     | 1.78% |
| :--------------------------: | :---: |
| Provider (Stability Funding) |  45%  |
|     Buyback & Burn TERRA     |  30%  |
|         Staking Pool         |  10%  |
|     Security & Management    |  10%  |
|        Community Pool        |   5%  |