Roles

Trader

As a trader, trading with NostraSwap allows you to gain extra tokens when compared to other product invariant AMMs in exchange for the extra gas cost. If there exists an arbitrage opportunity, the arbitrage will be automatically executed for you. The profit you get from arbitrage should be more than enough to cover the gas cost. If there is no arbitrage opportunity, the extra gas cost will be minimal. The arbitrage reward will always be the output token of the swap.

No Arbitration swap cost: 80000 - 90000 Arbitration swap cost: 175000 - 185000

Liquidity Provider

As a liquidity provider, you can deposit a pair of tokens of equal value into a pool to accrue the trading fees collected from the traders. In addition to that, the liquidity providers also gain 90% of any successful arbitraging opportunities. Arbitration profit could cover a large portion if not all of the impermanent loss (see Arbitrage Backtesting Section).