> For a complete index of Agora Finance documentation, fetch https://docs.agora.finance/llms.txt

# Protocol Overview

> Agora Instant Settlement — a fixed-price swap protocol for verified users eliminating slippage on stablecoin trades

## Why Agora Instant Settlement?

[Stablecoins](/instant-settlement/core-concepts#stablecoins) and tokenized [RWAs](/instant-settlement/core-concepts#rwas-real-world-assets) typically trade close to their [redemption price](/instant-settlement/core-concepts#redemption-price), but inefficiencies in traditional liquidity pools often result in unwanted slippage and increased transaction costs. Agora Instant Settlement offers verified users seamless, fixed-price swaps, eliminating price uncertainty and significantly lowering transaction costs.

## Overview

**Agora Instant Settlement** enables the exchange of [stablecoins](/instant-settlement/core-concepts#stablecoins) and [RWAs](/instant-settlement/core-concepts#rwas-real-world-assets), allowing trades at fixed, predictable prices without typical market slippage or [price impact](/instant-settlement/core-concepts#price-impact). It is tailored for users seeking token swaps within a secure environment without the need for trusted intermediaries, prioritizing execution efficiency and reducing market impact. Agora Instant Settlement is available as open-source software [on GitHub](https://github.com/agora-finance/stable-swap) under the **BUSL-1.1 License**.

The Instant Settlement facility adheres to the **Uniswap-v2 interface** and is available exclusively to verified platform users through a protected whitelist.

## Ecosystem Participants

Unlike most decentralized liquidity protocols, Agora Instant Settlement does not rely on external Liquidity Providers (LPs). Instead, liquidity management is handled by Agora's team, which oversees inventory and redemption across chains to guarantee a **fixed exchange price** between [stablecoins](/instant-settlement/core-concepts#stablecoins) and [RWAs](/instant-settlement/core-concepts#rwas-real-world-assets). Unlike typical decentralized exchanges, Agora Instant Settlement pair pricing **does not rely on the Constant Product formula**, enabling users to rebalance their portfolios without [price impact](/instant-settlement/core-concepts#price-impact).

Agora Instant Settlement prioritizes regulatory compliance and user security. All participants undergo thorough [Know-Your-Customer (KYC)](/instant-settlement/core-concepts#know-your-customer-kyc) verification, ensuring compliance with relevant anti-money laundering (AML) and financial regulation. Additionally, our smart contracts have undergone rigorous audits, reinforcing trust and reliability.

### Whitelisted Users

Users verified through Agora's [KYC](/instant-settlement/core-concepts#know-your-customer-kyc) system are eligible to be whitelisted for interacting with the pair contracts, allowing swap execution at **any time**.

* **DAPP Users**: Users interacting directly with the decentralized application through their [wallet](/instant-settlement/core-concepts#wallet), benefiting from predictable swap rates and Instant Settlement.
* **Arbitrageurs**: Traders who identify price inefficiencies across platforms. They help equalize prices across the broader DeFi ecosystem, promoting fair valuations aligned with underlying token [redemption price](/instant-settlement/core-concepts#redemption-price).
* **Liquidity Aggregators and Smart Contracts**: Automated systems leveraging Agora's predictable pricing for optimal trade execution across multiple platforms, significantly enhancing their operational efficiency.