Introduction

Welcome to SpookySwap V3

SpookySwap is an automated market-making (AMM) decentralized exchange (DEX) built on UNIV3 for EVM-compatible networks. As the premier DEX on Fantom, Horizen, and BitTorrent Chain, we are committed to delivering a seamless DeFi experience with a strong foundation powered by our BOO token, which supports governance, diverse farming options, and a built-in bridge. We remain dedicated to user-centered service as we continue to grow our unique presence across the crypto space.

How does an AMM DEX differ from a typical (centralized) market?

Understanding the differences between SpookySwap and a traditional exchange, it is advised to understand these two concepts: Automated Market Maker and how it deviates from the traditional order book-based exchanges, and how our permissionless systems vary from conventional permissioned systems.

Order book VS AMM

Most traditional markets rely on a central limit order book, where buyers and sellers place orders at different price levels, which are filled as demand fluctuates. If you've traded stocks through a brokerage, you're likely familiar with this system.

SpookySwap, however, operates differently by using an Automated Market Maker (AMM), also known as a Constant Function Market Maker, instead of an order book.

In simple terms, an AMM replaces the individual buy and sell orders with a liquidity pool consisting of two assets, each valued relative to the other. As one asset is exchanged for the other, their relative prices adjust, creating a new market rate. In this setup, traders interact directly with the pool, bypassing the need to match with specific orders from other users. The benefits and drawbacks of AMMs compared to traditional order books are still being actively explored by a growing community of researchers.

Permissionless Systems

The second key difference from traditional markets is SpookySwap v3’s permissionless and immutable design, drawing inspiration from Ethereum’s foundational principles. We are deeply committed to the ideals of open access and immutability, envisioning a future where anyone, anywhere, can engage with financial services free from discrimination or counter-party risk.

In a permissionless system, the protocol is fully open to the public, with no restrictions on who can use it. Anyone can swap, provide liquidity, or create new markets without barriers—unlike traditional financial services, which often limit access based on factors like location, wealth, or age.

The protocol is also immutable, meaning it cannot be upgraded or altered. No one can pause the contracts, reverse transactions, or modify the protocol’s behavior in any way. However, SpookySwap retains the right (but no obligation) to divert a small percentage of swap fees to a designated address. This capability, transparent to all participants, is capped between 10% and 25% to prevent misuse.