Swap

Tokens can be swapped at the market price. Input the token and quantity to swap and check the minimum payment amount.

• Depending on the situation of the pool, the minimum payout quantity is subject to change.

• A portion of the fee (0.25%) is distributed to users who provide liquidity to the pool.

What is Swap?

Swap in WEMIX.Fi is a decentralized trading service that allows users to trade crypto assets on-chain. Transactions through the swap service are made between users and the protocol through multiple blockchain smart contracts, unlike centralized transactions where 1:1 transactions are made between sellers and buyers through an intermediary also known as an order-book mechanism. When users swap assets, the prices at which the assets are traded at is controlled by an AMM (Automated Market Maker). The transaction is executed at a price calculated by the algorithm and there is a usage fee per swap; further details can be found in the fees section.

The protocol's liquidity pool refers to assets deposited in a smart contract that supports swap services, and there are various liquidity pools which consist of different pairs of assets. When a swap transaction is executed, the asset swapped by the user flow into the liquidity pool and the corresponding asset is deducted from the pool and paid to the user. For example, USDC and WEMIX$ transactions all happen within the 'USDC-WEMIX$ pool.' When a user swaps WEMIX$ with USDC, the swapped USDC flows into the pool while the corresponding amount of WEMIX$ is taken out of the pool and paid to the user.

In addition, the price of the assets traded with the liquidity pool is calculated by the Constant Product Market Maker (CPMM) algorithm, and the value of the token pairs is maintained at 1:1. More information about the CPMM algorithm can be found in the How it works.

The Swap service of WEMIX.Fi was created by referencing the decentralized swap protocol 'Uniswap V2' which is one of the largest on the Ethereum mainnet. The Swap service of WEMIX.Fi has been implemented to have similar core functions of Uniswap V2. We have prepared a step-by-step guide for all users to use the Swap service more easily.

Minimum Trading Amount

It refers to the minimum amount of assets that can be swapped, which excludes transaction fees and slippage. The amount of minimum swap may vary depending on the slippage.

Trading fee

It is the fee charged during a single swap. A fixed amount of 0.25% of the swap size is accrued.

Slippage rate

It is the difference between the predetermined swap and actual swap processed depending on the liquidity and market conditions.

Use cases of Swap

Exchanging WEMIX with USDC

Bob owns WEMIX on the WEMIX Mainnet. Previously, swaps had to be done through a decentralized exchange to swap WEMIX for other assets. However, after the release of the WEMIX.Fi swap service, swaps between WEMIX and USDC can be done without the use of a centralized exchange.

Exchanging WEMIX for WEMIX$

Alice has WEMIX on the WEMIX Mainnet and she wants some WEMIX$ to use the WEMIX.Fi services. Alice can easily exchange WEMIX for WEMIX$ with a single transaction using the swap service.