> For the complete documentation index, see [llms.txt](https://docs.zecrey.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zecrey.com/education/concepts-explained/zecrey-basics/zecrey-dex.md). # Zecrey DEX ### **What is Zecrey L2 swap？** Swap in Zecrey L2 is a typical decentralized exchange (DEX) based on an automatic market maker (AMM). Users can deposit assets into L2 to swap for target assets, and add liquidity to earn benefits. On Zero, the gas token of swap can be any token supported by Zecrey. ### **What is Liquidity?** In Zecrey, Liquidity providers(LP) will receive REY token at a certain APY as a reward for providing liquidity to the liquidity pool of decentralized swap DEX. The liquidity pool is a pool of tokens locked in a smart contract to increase market liquidity among traders. A liquidity pool has two kinds of tokens, which is a trading pair. When a new liquidity pool is created, the first LP will set the initial price in the pool. If that price in the pool is inconsistent with the global market, there will be profitable arbitrage opportunities and the LP will suffer impermanent losses. So the LP is incentivized to keep the exchange ratio of the two assets close to the market price. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.zecrey.com/education/concepts-explained/zecrey-basics/zecrey-dex.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.