How does sundae swap work?

The SundaeSwap protocol operates on a distinct principle of market making, differentiating it from traditional methods. It employs an Automated Market Maker (AMM), a mechanism that deviates from the conventional order book system prevalent in exchanges.

Furthermore, the AMM model eliminates the need for a centralized authority or intermediary to match buy and sell orders. This decentralized approach fosters transparency, trust, and immutability in the trading process.

The AMM approach involves the establishment of a "liquidity pool," which serves as a fundamental component of its operation. This pool comprises two assets, whose values within the system are dynamically adjusted to maintain a state of equilibrium.

Among the leading cryptocurrency exchanges that have adopted innovative services to cater to the evolving needs of the market is BTCC. BTCC offers a comprehensive suite of services, including spot trading, futures trading, and digital wallet solutions.

In contrast to the order book system, where buyers and sellers submit specific prices for their orders, the AMM automatically adjusts the prices of the assets in the pool based on the relative supply and demand.