# 🔄 Friendly Swap

![](/files/JfS5jl9Su8lib14vh2N6)

An AMM is vitally important to a sustainable DeFi system as it is essentially an algorithm that sets buying and selling prices for cryptocurrencies. The Friendly Market AMM is built using the constant product formula `x*y=k` to determine token prices.

A 0.3% fee will be collected on every trade executed on the AMM. 0.25% will go to liquidity providers while the rest will be split evenly between superREI holders and the Friendly Market treasury.

Naturally, yield farming will be available on the platform as well, giving liquidity providers the chance to earn more yield in addition to the trading fees they get from providing liquidity.


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