> For the complete documentation index, see [llms.txt](https://docs.garuda-defi.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.garuda-defi.org/garuda-swap.md).
# Garuda Swap
## What is Garuda Swap?
Garuda Swap is AMM (Automated Market Maker) Spot trading product, allowing users to exchange one token for another instantly on LUNC with the best all-around execution that balances best price, speed, success rate, and more.
### Constant Product Market Maker
Garuda DeFi Swap using **Constant Product Market Maker**. It maintains a constant product of the quantities of two tokens in a liquidity pool. The formula is:
> **x \* y = k**
where x and y are the quantities of the two tokens, and k is a constant. As users trade tokens, the quantities x and y change, but the product k remains constant.
This ensures that prices adjust automatically based on supply and demand.
### Trading Fees
In Garuda DeFI, standard trading fees are set to 0.5%\* for each trade which will be deducted from the transaction of the asset received by the trader.
| Item | Percentage |
| ------------------- | ---------- |
| Trading Fees | 0.5% |
| Liquidity Providers | 0.2% |
| GDEX shares | 0.3% |
{% hint style="info" %}
*\*Trading fess are change-able with governance protocols*
{% endhint %}
## How to Swap?
There are 2 type of swap in Garuda DeFi :
1. Direct Swap - Swap tokens directly through a single liquidity pool for a simple and efficient trading experience.
2. Multi-hop Swap - Swap tokens through multiple liquidity pools to find the best available trading route and optimize your swap output.
