KimochiSwap uses an automated market maker (AMM) model. That means that while you can trade digital assets on the platform, there isnโt an order book where youโre matched with someone else. Instead, you trade against a liquidity pool.
Those pools are filled with other usersโ funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees.