Swarm Markets is a compliance protocol layered on top of an AMMs. The pool contract is designed to be able to allow qualified users to access liquidity for qualified digital assets without the need for a centralized entity to facilitate the trades.
The Swarm Markets smart contracts for the AMM functionality are a fork of the Balancer Protocol. The primary changes made to the contract are only a permission layer that creates compatibility with Swarm Passports and whitelisted assets.
For reference, please refer to the Balancer Whitepaper and documentation for additional context on the pool contract.