The Soroswap.Finance is an open-source protocol for providing liquidity and trading tokens on Soroban. It eliminates trusted intermediaries and unnecessary forms of rent extraction, allowing for safe, accessible, and efficient exchange activity. The protocol is non-upgradable and designed to be censorship resistant. The Soroswap.Finance and the Soroswap Interface were developed by Paltalabs.

To mint test tokens, create a new liquidity pool, provide liquidity or swap tokens head over to the Soroswap Interface and connect Freighter wallet. Remember, each transaction on Soroban costs Lumens (XLM) so you will need test lumens in order to use it. Ask friendbot for test lumens.

If you're a developer interested in building on top of the Soroswap.Finance, please refer to our extensive docs.

Soroswap is an automated market maker. In practical terms, it is a collection of smart contracts that define a standard way to create liquidity pools, provide liquidity, and swap assets.

Each liquidity pool contains two assets. The pools keep track of aggregate liquidity reserves and the pre-defined pricing strategies set by liquidity providers. Reserves and prices are updated automatically every time someone trades. There is no central order book, no third-party custody, and no private order matching engine.

Because reserves are automatically rebalanced after each trade, a Soroswap pool can always be used to buy or sell a token — unlike traditional exchanges, traders do not need to match with individual counterparties to complete a trade.

For a more in-depth description, check out the Concepts from the documentation.