# Bitswap

Bitswap operates as an automated market maker (AMM) that provides token swap functionality and liquidity provision. The formula is simple: x \* y = k. Prices are determined by the amount of each token in a pool, with x and y representing the two tokens in a liquidity pool. No intermediaries are needed. Bitswap allows your club to have its own decentralized exchange (DEX).

Users who interact with Bitswap within a BounceClub can swap any supported tokens and manage liquidity. Each transaction made in the liquidity pool incurs a 3% fee based on the token swap volume. 

## How to swap tokens using Bitswap as a BounceClub member

1. First, sign in by connecting your wallet.

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2. Head to the BounceClub that you want to engage with. If they've added Bitswap to the club, you can click on the Bitswap icon to get started.

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3. Select the tokens you want to swap from the supported tokens.&#x20;

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4. Enter the amount of tokens that you want to swap.&#x20;

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5. Double check the amounts of tokens you're paying and receiving. Then click "Confirm Swap" to complete the transaction.&#x20;

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6. Once your transaction is processed, you should receive a "Transaction Confirmed" notice.

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