# Swapping Metaple Finance uses the [AMM](https://academy.binance.com/en/articles/what-is-an-automated-market-maker-amm) model to create liquidity pools of tokens that users can access to swap. Users don't trade as makers or takers but instead interact with a [smart contract](https://academy.binance.com/en/articles/what-are-smart-contracts). Anyone can start providing liquidity by depositing a pair of coins in equal value. In return, the liquidity providers receive LP (liquidity pool) tokens that act as a receipt for their share of the pool. These LP tokens are burnt when reclaiming your tokens. You can also provide them to use in yield farming, where your fees are constantly reinvested in the pool to compound your interest. Metaple FInance’s AMM model rewards liquidity providers with a 0.17% fee shared proportionally based on the [liquidity](https://academy.binance.com/en/articles/liquidity-explained) provided. The tokens' prices aren't determined via an order book but through a formula known as the Constant Product Market Maker. Let's use the ETH/DAI liquidity pool as an example. We'll refer to ETH as ***x*** and [DAI](https://academy.binance.com/en/articles/a-guide-to-makerdao-and-dai) as ***y***. With a Constant Product Market Maker formula, ***x*** and ***y*** are multiplied together to create a constant, ***k***, that can’t change. ``` x * y = k ``` The liquidity pool will offer you a conversion rate, in our case, 3,000 DAI (***y***) for 1 ETH (***x***). When you supply the 3,000 DAI to the pool and remove 1 ETH, it will have a higher supply of DAI and a smaller supply of ETH. This action causes the price of ETH to rise as ***k*** is constant. In other words, you are using your DAI to buy ETH. As more ETH leaves the pool, its price in comparison to DAI rises. ### **Token Swaps** on Metaple Finance are a simple way to trade one BEP-20 token for another via automated liquidity pools. The liquidity provided to the exchange comes from Liquidity Providers ("LPs") who stake their tokens in "Pools". In exchange, they get FLIP (Metaple Liquidity Provider) tokens, which can also be staked to earn MLX tokens in the "farm". When you make a token swap (trade) on the exchange you will pay a **0.2% trading fee**, which is broken down as follows: **0.17%** - Returned to liquidity pools in the form of a fee reward for liquidity providers. **0.03%** - Sent to the Metaple Finance Development Treasury. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.metaple.finance/swapping.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.