Kittyswaps is a fork of Uniswap, a protocol for automated token exchange on Ethereum. While Uniswap is for trading ERC-20 tokens, Kittyswaps is a protocol for ERC-1155 tokens. Both are designed to favor ease of use and provide guaranteed access to liquidity on-chain.

Most exchanges maintain an order book and facilitate matches between buyers and sellers. Kittyswaps smart contracts hold liquidity reserves of various tokens, and trades are executed directly against these reserves. Prices are set automatically using the constant product $x*y = K$ market maker mechanism, which keeps overall reserves in relative equilibrium. Reserves are pooled between a network of liquidity providers who supply the system with tokens in exchange for a proportional share of transaction fees.

An important feature of KittySwaps is the utilization of a factory/registry contract that deploys a separate exchange contract for each ERC-1155 token contract. These exchange contracts each hold independent reserves of a single fungible ERC-1155 currency and their associated ERC-1155 token id. This allows trades between the Currency and the ERC-1155 tokens based on the relative supplies.