# AMM Swap

The automated market maker (AMM) of PlaySwap allows users to exchange tokens on the BNB blockchain network.

The liquidity provided to the exchange comes from Liquidity Providers ("LPs") who stake their tokens in Liquidity Pools. In exchange, a user gets LP tokens that he can also stack to earn PLAY tokens in the "Farms". When you make a token swap (trade) on the exchange, you will pay a 0.2% trading fee, used as follows:

0.14% - Returned to liquidity pools in the form of a fee reward for liquidity providers.

0.04% - Will be used to Buy Back and Burn

0.02% - Marketing and investment activities