# Frequently Asked Questions

<mark style="color:purple;">**What is FamSwap?**</mark>

FamSwap is a decentralized exchange (DEX) that operates on the Binance Smart Chain (BSC) network and aggregates multi-chain transactions. It is based on an innovative Automated Market Maker (AMM) model and aims to provide global users with a secure, efficient, and diverse cryptocurrency trading experience. As an innovator, FamSwap is built on a robust infrastructure and utilizes cutting-edge technology and smart contracts to offer users exceptional trading functionalities. FamSwap includes various functional modules such as token trading, multi-coin swapping, LP liquidity pools, LP mining, single-coin mining, airdrops, launchpad, NFTs, games, and AI chat, catering to the diverse needs of users in the cryptocurrency domain.

<mark style="color:purple;">**How do I use the FamSwap?**</mark>

To create a new liquidity pool, provide liquidity, swap tokens, or other funcations, head over to the FamSwap Interface and connect a Web3 wallet. Remember, each transaction on Binance Smart Chain costs BNB. For a more detailed walkthrough, check out our [Guides](https://famswaps-organization.gitbook.io/famswap/get-started/create-a-wallet).

<mark style="color:purple;">**How does FamSwap work?**</mark>

FamSwap is an automated market maker. In practical terms, it is a collection of smart contracts that define a standard way to create liquidity pools, provide liquidity, and swap assets.\
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Each liquidity pool contains two assets. The pools keep track of aggregate liquidity reserves and the pre-defined pricing strategies set by liquidity providers. Reserves and prices are updated automatically every time someone trades. There is no central order book, no third-party custody, and no private order matching engine.\
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Because reserves are automatically rebalanced after each trade, a FamSwap pool can always be used to buy or sell a token — unlike traditional exchanges, traders do not need to match with individual counterparties to complete a trade.\
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For a more in-depth description, check out the [Concepts](https://famswaps-organization.gitbook.io/famswap/introduction-of-famswap) from the documentation.