Humble Swap
HumbleSwap is a decentralized finance (DeFi) platform built on the Algorand platform. Humble went live with their mainnet in June of 2022. It is an automated market maker, or AMM, which is a kind of distributed cryptocurrency exchange.
Users
Anyone can use HumbleSwap to swap tokens or provide assets for swappers in the form of liquidity pools. Swappers typically want to exchange tokens for another, and poolers wish to deposit their assets to earn revenue/fees.
Pools
Pools, or liquidity pools, are accounts that have pairs of specific assets (tokens) deposited in a given ratio x*y=k, where k is a constant. Pools give returns to asset providers by charging fees to swappers. Pools track each deposit using a liquidity token, representing any pooler's position in a liquidity pool account. When poolers deposit assets, they are given a liquidity token in return. Poolers who wish to withdraw their fees from the pools must burn their liquidity tokens, which results in the removal of assets and fees from the pool.
Rates
The pools themselves determine the price for any asset, simply the ratio of the assets in the pool and the amount to be swapped. The total product of the pool always stays constant. In this case, the k constant in the formula (x*y=k) plus the fees accrued. This formula is the Constant Product formula, which is the most popular formula for an automated market maker.