> ## Documentation Index
> Fetch the complete documentation index at: https://docs.incentiv.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Incentiv’s Native DEX

# Incentiv’s Native DEX

Incentiv includes a **built-in decentralized exchange**.\
This isn’t a separate dApp. It’s part of how the protocol itself works whenever it needs to convert one token into another.

The goal is simple: make core protocol features - like paying fees in any token and running automated smart-wallet actions - work reliably under all conditions, using a **battle-tested DEX design**.

## Why a Native DEX ?

Incentiv supports:

* Paying fees in multiple tokens (Unified Token model)
* Smart-wallet automation (AAA)
* Routing value fees into the reward pool

To do this safely, the chain needs a **guaranteed, on-chain way to swap tokens** that is:

* always available
* predictable and deterministic
* economically efficient

Incentiv uses the **Uniswap v3 architecture** (concentrated liquidity pools and price ticks) and treats it as a native component of the execution environment. Every node executes the same logic as part of transaction processing, so swaps behave the same everywhere.

## How It Works

Under the hood, the native DEX is:

* A set of **liquidity pools** between token pairs
* Each pool following the Uniswap v3 concentrated-liquidity model
* Liquidity providers (LPs) depositing tokens into these pools in chosen price ranges

When the protocol needs a swap - for example, converting USDC fees into \$CENT for the reward pool, or rebalancing assets inside a smart wallet—it simply calls the internal DEX. The Incentiv DEX engine:

1. Finds the relevant pool
2. Uses the current price and liquidity ranges
3. Executes the swap deterministically across all nodes

From a developer’s and protocol perspective, it’s a **built-in service**.