# UNCHAIN X Protocol

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The Unchain X protocol is a P2P system designed to exchange cryptocurrencies (BEP20 tokens) on Binance Smart Chain (BSC). The protocol is implemented as a set of smart contracts that are continuous and non-upgradeable. It is designed to work without a trusted intermediary that prioritizes censorship resistance, security, and self-storage and can optionally restrict access.

AMM is an innovative trading mechanism that evolved from traditional order book-based DEXs, revolutionizing cryptocurrency trading on-chain. Instead of buy/sell order books, traders can freely transact through liquidity pools created by liquidity providers, who earn a reward of trading fees proportional to their liquidity contribution. Additionally, anyone holding tokens following the BSC type can become a liquidity provider.

Unchain X's AMM mechanism is based on the formula x\*y=k \[x=A, y=B, k=Constant Function]. When creating a liquidity pool, the quantity of each token determines the price range of the corresponding token. For example, if the liquidity supply of x (A) increases, y (B) decreases to maintain the constant function k. This design ensures that token supply quantities fluctuate in the liquidity pool, forming prices accordingly.

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\*In AMM-based swap protocols, there can be slippage between the expected price at the time of the trade and the actual executed price. Additionally, liquidity providers may incur impermanent loss during the adjustment process by the automated market-making mechanism if there is a discrepancy between the pool's token price and external prices after supplying liquidity.

Please proceed with trading and providing liquidity while keeping these risks in mind.


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