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# Concepts

## Automated Market Maker

The swap module provides for functionality and governance of an Automated Market Maker protocol. The main state transitions in the swap module include deposits/withdrawals to liquidity pools by liquidity providers and token swaps executed against liquidity pools by users. Each liquidity pool consists of a unique pair of two tokens. A global swap fee set by governance is paid by users to execute trades, with the proceeds going to the relevant pool's liquidity providers.

## SWP Token distribution

[See Incentive Module](../../incentive/spec/01_concepts.md)
