Tokan Exchange is a decentralized exchange (DEX) and liquidity protocol built on the Scroll network. It is designed to provide sustainable liquidity solutions within the Scroll ecosystem. The platform allows users to trade tokens with low-cost swaps and provides liquidity providers (LPs) with opportunities to earn consistent yields.

Tokan Exchange employs a dual-pricing mechanism that includes both Uniswap v2 and Curve Stable Swap curves, catering to different asset types such as stablecoins and more volatile tokens. LPs can contribute to liquidity pools and receive rewards in the form of TKN emissions, which are allocated based on the liquidity they provide to specific gauges.

The platform also supports a permissionless approach to creating liquidity pools, though only whitelisted tokens can be included. Governance and voting are integral parts of Tokan, with veTKN holders having the ability to vote on which tokens and pools receive incentives, thereby influencing the distribution of swap fees and rewards.