# ZenSwap **What is ZenSwap ?** ZenSwap is a decentralized cryptocurrency exchange that uses the Katzenomics 2.0 ecosystem's first automatic market making mechanism (AMM DEX). ZenSwap exchange is where standard token trades on Katzenomics 2.0 happen. **There are two kinds of users on the ZenSwap Exchange:** **Liquidity Providers**: They add their assets to the Pool **Traders**: They swap assets back and forth in the Pool according to the algorithm in the smart contract (Smart Contract). This is different from how the order book works on other exchanges. AMM is a market-making system that lets buy and sell orders be carried out without going through the order book. You only need to add assets to the pool (Pool), and the orders will be filled right away. The price will be adjusted according to the smart contract's formula. **The way that ZenSwap works is as follows:** 1. Each Pool on ZenSwap will have two types of assets, such as A and B. The liquidity provider will put in two assets at a ratio of 1:1. Get an LP token as well. This is a token that represents ownership of a portion of the assets in the Pool. 2. If a trader wants to swap from A to B, he or she can put A in the Pool and get B. 3. Swap currently charges 0.25% of each transaction's value as a fee. This fee will be split: * 0.17% (68%) for LP (Liquidity Provider). * 0.03% (12%) for ZenSwap Treasury. * The remaining 20% is used to buyback & burn. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://katzenomics.gitbook.io/katzenomics-2.0-whitepaper/zenlabs-ecosystem/zenswap.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.