How the AMM works

Tegro Finance is an automated market maker (AMM). Instead of matching buyers and sellers in an order book, every pair has a liquidity pool — a smart contract holding reserves of two tokens — and prices are derived from those reserves. It is fully non-custodial: pools hold the liquidity, not the team.

Constant product

Each pool follows the constant-product rule:

x · y = k

where x and y are the reserves of the two tokens and k is held constant by every swap. A trade adds to one reserve and removes from the other so that their product stays the same — which is what sets the price and makes large trades cost more (see Price impact & slippage).

Worked example

A pool starts with 100 TON and 1,500 TGR, so k = 150,000 and the price is 1 TGR = 0.0667 TON.

A trader sells 10 TON into the pool. To keep k constant, the TGR reserve must fall to 150,000 / 110 ≈ 1,363.6, so the trader receives about 136.4 TGR (before fees). The more they buy, the worse the price they get — that is price impact in action.

Liquidity providers

Anyone can deposit a pair of tokens and become a liquidity provider (LP). In return you receive LP tokens representing your share of the pool. You can redeem them at any time for your share of the reserves plus the fees they have earned. See the Liquidity guide.

Fees

Every swap pays a small fee that is split:

• 0.2% goes to liquidity providers (added to the pool reserves).
• 0.1% is the protocol fee.

So the total swap fee is 0.3%, on top of the normal TON network gas (a few cents). Exact, live fees are always shown before you confirm a swap. See Fees for details.

Fee parameters are defined on-chain per pool and may be updated by protocol governance. Always rely on the value shown in the app at confirmation time.