You may be unfamiliar with the concept of cosmic swaps. These are swaps that happen between two tokens that both exist on the Phantasma mainnet. The most obvious example is swapping between SOUL and KCAL.
Besides having to reside on the Phantasma mainnet there is no limit as to which assets can be included in the cosmic swap algorithms. This means that any asset that we enable swapping capabilities for, such as Ethereum, DAI, NEO, GAS and others, can have cosmic swap pairs enabling low fee automatic swapping.
Native automatic cosmic swaps have been enabled on the Phantasma mainnet since its launch. When you first swap your SOUL to mainnet to stake, there is no KCAL in your wallet. As we know, KCAL is needed for any transaction to occur on the Phantasma mainnet. So what happens is that when staking, you are prompted to swap a fraction of a SOUL for KCAL to cover the fee. Confirming this action triggers an automatic cosmic swap according to an algorithm. The algorithm adjusts the swap ratio based on the token balances in the pools.
In a way, you could call cosmic swaps Phantasma’s built-in Uniswap. But a Uniswap integrated into the core of the chain and with negligible transaction fees.
In time, the Phantasma team will provide the initial liquidity for multiple cosmic swap pools. After this, community members are free to join in providing liquidity while earning a portion of the trading fees.