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Swaps are the equivalent to going to a money exchange to convert one international currency to another.
Users can swap tokens on PYESwap by exchanging tokens for another with ease via automated liquidity pools.
The cornerstone of any decentralized exchange, the Swap function, allows a user to exchange one token for another based on their current values relative to one another. A small fee is charged to perform a swap, which is a principal source of revenue for the DEX.
When you swap tokens (trade) on the exchange you will pay a 0.3% trading fee, which is broken down as follows:
0.17% - Added to Liquidity Pool
0.06% - BuyBack & Burn of $PYES
0.05% - $PYES Staking Pool Donation
0.02% - Development
Decentralized exchanges, unlike centralized exchanges which require third-party intermediaries like market makers to allow token trading, use smart contracts to arrange trades between users. This enables anonymous trading without the limitations of a centralized exchange.
Unlike a centralized exchange, a decentralized exchange's entire liquidity is contributed by users and partner projects. A decentralized exchange can provide liquidity providers incentive tokens (known as LP Tokens), as well as a percentage of trading fees made from that token pair to encourage deeper liquidity.
A token cannot be traded for another token unless the exchange for that token pair has sufficient liquidity depth. Let's imagine a project created an "EYE" token on the ARB Chain but didn't offer any ARB-EYE, or any other [TOKEN]-EYE liquidity. This will hinder a user to swap into the EYE token using any other assets because there is no liquidity on the DEX to enhance it.
The above description is how exchange happens in the PYE ecosystem.
PYESwap makes the process as easy as ABC. When you swap from one token to another using our platform, you don’t have to worry about losing any percentage of your token as a trading fee thanks to Swap 2.0.
If you’ve met the above conditions, the process of swapping your tokens is simple:
- 1.Click on Trade, then click on Exchange from the drop-down.
- 2.Choose the tokens you want to exchange. If you are trading a token for the first time, you must first enable the token contract in your wallet using the Enable button.
- 3.Enter the amount of the token you’d like to trade for or receive. The exchange will pre-fill the other amount.
- 4.Check the details to ensure the values are accurate and click “Swap”.
- 5.Confirm the transaction in your wallet. The exchange should be reflected in your wallets shortly after if it was successful.