The core concept to understanding how Nimera Swap works is the concept of pools. Pools are like market pairs — every currency that traders in Nimera Swap is part of at least one or multiple pools.
Each pool consists of two currencies – a project’s currency and а quoted currency, usually BTC, ETH, USDT or EON.
Liquidity Providers invest into pools, adding their liquidity and allowing traders to make trades, or swaps, and create volume. Everytime a trade is made, a 0.5% fee is taken and returned to that pool.
When Liquidity Providers exit pools, they take out their liquidity and their percent of the fee. The fee is distributed among Liquidity Providers relative to their share of liquidity ownership.
Pools are created by the cryptocurrency issuer, who becomes the first Liquidity Provider. The exchange rate is calculated based on the ratio of the volumes of currencies in the pool.