CarboSwap

Technical tools

CarboSwap is an Automated Market Maker (AMM) that allows our users to oversee transactions without the help of a third-party. We aim to be one of the leading DEXs on Aptos.

CarboSwap Exchange offers multiple decentralized trading features:

Swap and trade tokens through liquidity pools

CarboSwap lets users trade without the need to go through a Centralized Exchange. Everything you do on CarboSwap is routed directly through your own wallet, no need to trust someone else with your tokens.

You can only swap tokens on CarboSwap if there is enough liquidity for those tokens. If nobody has added much liquidity for the token or tokens you want to swap, it will be difficult, expensive, or impossible to do so.

Providing liquidity will get you LP Tokens, which will earn you rewards in the form of trading fees for making sure that there's always liquidity for the exchange to use.

Yield farming and staking

Yield farming lets users that are providing liquidity earn CARBO rewards by locking their LP tokens into our Turtle Farms. The incentive is to balance out the risk of impermanent loss that comes along with locking in your liquidity.

CarboSwap also allows users to stake or lock a single token in our Turtle Pools to earn high interest rates paid out in CARBO without having to be exposed to impermanent loss.

To compensate these high interest rates, paper hands who exit Turtle Pools early will have to pay a fee that covers Turtle Farms impermanent loss and encourages people to provide liquidity through CarboSwap.

Impermanent loss protection

Impermanent loss ?

Liquidity providers on automated market makers (AMMs) are subject to impermanent loss (IL). This is an excess loss that occurs when the price ratio of paired tokens diverges.

As the price of each asset goes up or down relative to the paired token, the ratio of the underlying tokens will automatically rebalance to maintain equal price weighting.

Whenever this rebalancing happens there is an excess loss, which is called "impermanent" because it will be erased if the ratio between the underlying tokens reverts to the ratio at the time of deposit. Impermanent Loss is therefore defined as the difference between the value of LP tokens vs. the theoretical value of the underlying tokens if they had not been paired.

CarboSwap comes with a solution to IL

Other AMMs usually compensate IL through farming rewards however we believe this isn't enough.

Turtle Farm requests

If you're behind any kind of project on Aptos and you would like to see a Turtle Farm that encourages users to provide liquidity for your token on CarboSwap, feel free to apply.