# Exchange

BlueLotusDAO is an Automated Market Maker (AMM), and the Exchange is one of the important products of the DAO. 

The Exchange offers several features that support decentralized trading:

### Swapping/Trading

BlueLotusDAO lets users trade without the need to go through a Centralized Exchange. Everything you do is routed directly through your own wallet!.

<figure><img src="/files/yTIfxf91Q6IbuAGL5f6m" alt=""><figcaption></figcaption></figure>

### Liquidity Pools

You can only swap tokens on BlueLotusDAO if there is enough liquidity for those tokens. If nobody has added much liquidity for the token or tokens you want to swap, it will be difficult, expensive, or impossible to do so.

Providing liquidity in V2/V3 or both, will get you LP Tokens, which will earn you rewards in the form of trading fees for making sure there's always liquidity for the exchange to use.

<figure><img src="/files/pwU5rX9IYyJxah8aAiLS" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/8wbIwo0qIxbQXroiMSdc" alt=""><figcaption><p>Liquidity selection V2 or V3 </p></figcaption></figure>

<figure><img src="/files/XwYRVoev3xGhwQlKgCvu" alt=""><figcaption><p>Adding V3 liquidity</p></figcaption></figure>

<figure><img src="/files/zKrkcL7yqtcqJK2uGPtO" alt=""><figcaption><p>Adding V2 liquidity </p></figcaption></figure>

## Farming:

Yield farming lets users that are providing liquidity earn BlueLotusDAO Token (BLDT) rewards by locking their LP tokens into a smart contract. The incentive is to balance out the risk of [impermanent loss](https://academy.binance.com/en/articles/impermanent-loss-explained) that comes along with locking in your liquidity.

An Initial Blue Offering, could be Private or Public, are events that lets users buy into a limited-time offer to purchase new tokens. The IBO price is usually very generous.

<figure><img src="/files/EVKmCC67pzLhgiRAJXJy" alt=""><figcaption></figcaption></figure>


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