# Exchange

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Honorswap is an Automated Market Maker (AMM), and the Exchange is at the heart of Honorswap.

The Honorswap Exchange offers several features that support decentralized trading:

### Swapping/Trading

Honorswap lets users trade without the need to go through a Centralized Exchange. Everything you do on Honorswap is routed directly through your own wallet—no need to trust someone else with your coins!

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### Liquidity Pools

You can only swap tokens on Honorswap if there is enough liquidity for those tokens. If nobody has added much liquidity for the token or tokens you want to swap, it will be difficult, expensive, or impossible to do so.

Providing liquidity will get you LP Tokens, which will earn you rewards in the form of trading fees for making sure there's always liquidity for the exchange to use.

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### Yield Farming

Yield farming lets users that are providing liquidity earn CAKE rewards by locking their LP tokens into a smart contract. The incentive is to balance out the risk of [impermanent loss](https://academy.binance.com/en/articles/impermanent-loss-explained) that comes along with locking in your liquidity.

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