Swap Tokens Using DexWallet and Kyber
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Find in this post:
- Step by step on how to exchange between DAI (USD pegged) and MakerDAO
- FAQS
We open DexWallet and we go to Apps:
- Then we tap Swap (beta):
Kyber Swap (beta)
Kyber Swap is a simple way to exchange tokens. Kyber uses smart contracts to swap your tokens in a liquidity pool.
We have DAI tokens (pegged to 1 USD each) and we would like to swap them for MakerDAO tokens.
- We find MakerDAO on the right side
- We specify 737 DAI to be exchanged for ~1 MKR (1 MakerDAO)
- Tap Approve&Trade
DAI Approval
Tokens need our approval the first time we interact with them in a particular application.
As soon as the Approval Process is complete, the Swap Transaction process starts.
- Swap Transaction mining
The process is handled by DexWallet smoothly and updates its status in real time:
- We tap “That was easy” and then DeFi to come back to the menu
- We can see our new MakerDAO Token, we successfully swapped DAI (US Dollar pegged) for 1 Maker token.
FAQS
We exchanged 737 DAI for 1 MKR and later on, the token valuation says 706$, what has happened?
We swapped coins using Kyber. Kyber offered $MKR at 737 DAI, we took it. However, the valuation of our tokens in DexWallet comes from ethplorer.io.
That’s a 4% difference. Isn’t that too much?
At the swap time nobody could have bought MKR at 706 despite the price valuation from ethplorer.io. Exchanges have plenty of tricks on the spreads between bid and ask prices. The ask price for MKR was 737, and the bid price was 706 on Ethfinex, for instance. Ethfinex places the order of 706, at the same time introduces a separate order of a very tiny amount, let’s say 0.01MKR. The process is repeated often so the price that is signaled is 706.
How come MKR has a 4% spread?
Maker has a fixed supply of 1M coins. It is a scarce good that has the value to issue credits and issue stable coins (DAI). Credits generate interests and these are paid with MKR. Hence, there’s not much liquidity on exchanges as holders are not interested on selling but rather on using for governance or to issue credits.
Have we paid fees for swapping coins?
Yes, fees are injected directly into the final price we pay. This is a very typical approach when exchanging currencies.
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