How?

About the AMM (Automated Market Maker) and how it works on BumbSwap.

BumbSwap uses a backend router to initiate transfers for traders,The backend script is written in a decentralized manner that gives no power to the deployer or wallet owner!!

Due to the nature of Bitcoin Ordinals theres no such thing as a contract that operates according to code ( Uniswap for example ) so the only possible method to enable trading for BRC20 is thro a node js or similar backend structure.

Using a backend has its pros and cons but its the only doable option in the meantime!

Lets dive into how BumbSwap handles transfers " trades ":

Despite BumbSwap having initial liquidity for launch , its crucial to attract liquidity providers on the long Run.

Liquidity providers earn 70% of the trading fees ( 1% per trade ) .