> For the complete documentation index, see [llms.txt](https://morphos-organization.gitbook.io/morpho-network-whitepaer/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://morphos-organization.gitbook.io/morpho-network-whitepaer/dapps/morphoswap.md).

# MorphoSwap

**What is MorphoSwap ?**

 MorphoSwap is a decentralized cryptocurrency exchange that uses the **Morpho Network** ecosystem's first automatic market making mechanism (AMM DEX). MorphoSwap exchange is where standard token trades on **Morpho Network** happen. 

**There are two kinds of users on the MorphoSwap exchange:**

**Liquidity Providers**: They add their assets to the Pool 

**Traders**: They swap assets back and forth in the Pool according to the algorithm in the smart contract (Smart Contract). This is different from how the order book works on other exchanges.

AMM is a market-making system that lets buy and sell orders be carried out without going through the order book. You only need to add assets to the pool (Pool), and the orders will be filled right away. The price will be adjusted according to the smart contract's formula.

**The way that MorphoSwap works is as follows:**

{% embed url="<https://morphoswap.network/>" %}

1. Each Pool on MorphoSwap will have two types of assets, such as A and B. The liquidity provider will put in two assets at a ratio of 1:1. Get an LP token as well. This is a token that represents ownership of a portion of the assets in the Pool.
2. If a trader wants to swap from A to B, he or she can put A in the Pool and get B.
3. MorphoSwap currently charges 0.25% of each transaction's value as a fee.&#x20;

* This fee will be split:
  * 0.17% (68%) for LP (Liquidity Provider).&#x20;
  * 0.03% (12%) for MorphoSwap Treasury.&#x20;
  * The remaining 20% is used to buy back and burn $MORPHO tokens.