Savmswap
  • 💡Introduction
    • Comparative Analysis with Traditional Markets
    • Automated Market Maker (AMM) vs Order Book
    • Embracing Permissionless Systems
  • ♟️Protocol Overview
    • ⚒️How Savmswap Works
      • Smart Contracts
      • Core
      • Factory
      • Pairs
      • Periphery
      • Library
      • Router
      • Design Decisions
      • Minimum Liquidity
    • ⛴️Ecosystem Participants
      • Liquidity Providers
      • Traders
      • Developers/Projects
    • 🔬Glossary
    • ⚙️Contract Addresses
  • 🛰️Core Concept
    • Swaps
      • Receiving Tokens
      • Sending Tokens
    • Pools
      • Pool Tokens
      • Why Pools?
    • Staking
      • How to Stake on Savmswap?
      • Staking on Savmswap
      • Fees on Savmswap
    • Flash Swaps
    • Oracles
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  1. Protocol Overview
  2. How Savmswap Works

Minimum Liquidity

To mitigate rounding errors and enhance the theoretical minimum tick size for liquidity provision, pairs initially burn the first MINIMUM_LIQUIDITY pool tokens. This amount is typically negligible for most pairs. This automatic burning occurs during the first liquidity provision, setting a permanent lower bound on the totalSupply from that point onwards.

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Last updated 1 year ago

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