Exchange Layer
Dual-engine on-chain DEX: AMM and order book with transparent fee routing
The exchange engine runs entirely on SB Chain. All order placement, execution, cancellation, and settlement is recorded on the immutable ledger. There is no off-chain matching engine, no black box, and no party with privileged access to order flow.
Dual-Engine Architecture
SwapBlok operates two execution engines simultaneously, with an Exchange Router directing each trade to the optimal venue:
| Engine | Best For | Pricing Model |
|---|---|---|
| AMM | Continuous liquidity, passive LPs, small to mid trades | x × y = k constant product |
| Order Book DEX | Limit orders, precise pricing, large trades | Price-time priority matching |
AMM
The AMM uses the constant product formula x × y = k, where x and y are the reserves of two assets in a pool and k is invariant across every trade (excluding fees). Liquidity providers deposit asset pairs into pools and earn a share of every swap fee proportional to their pool ownership.
Order Book DEX
Inherited directly from BitShares' battle-tested on-chain order book, the DEX supports limit orders, stop orders, and fill-or-kill execution. Orders are matched on-chain in price-time priority. The entire order book state, every open order, every fill, every cancellation, lives on the immutable ledger and is independently verifiable by anyone.
Fee Architecture
All trading fees flow through a transparent on-chain treasury. A portion funds witness block rewards and LP incentives; the remainder is directed to a buyback-and-burn programme that retires SBT from circulation, linking token value directly to exchange volume.