SmarDex is an automated market maker (AMM) that solves the impermanent loss (IL) problem and converts it into impermanent gain (IG) in some cases. It is an open source smart contract, a decentralized software that runs on compatible Ethereum Virtual Machine blockchains (such as Ethereum, Binance Smart Chain, Avalanche, Polygon, etc.). These blockchains are data exchange protocols, similar to the Bitcoin blockchain, that allow the storage and transmission of information in a public, immutable and decentralized manner. By using SMARDEX, users can exchange decentralized ERC20 tokens, which are digital assets.