⚠️What are the risks ?

As DogeSwap is a hybrid liquidity pool system between Fungible Tokens and NFTs. The impermanent loss that you usually experience in classic token pools on Raydium and other protocols, is still present.

DogeSwap will balance the Doges & DAWG in the pool based off a Constant Product AMM Algorithm (slight modified version from Uniswap, mainly to adapt NFT constraints).

Example:

User deposits 5 doges & 50k DAWG - If an other user buy doges from the pool and there now are less doges and more DAWG in the whole pool, it is possible for user's pool to now display 4 doges and 60k DAWG.

The algorythm and the arbitrage are here to rebalance the pool so over time users LP will tend back to the 5 doges initially deposited.

In any case, even if a user removes its liquidity while being imbalanced, he can still swap the supplement of DAWG withdrawn back to a Doge.