How to Swap on Ubeswap
A step-by-step tutorial to start trading on Ubeswap.
Ubeswap is a decentralized exchange and automated market maker (AMM) protocol for Celo assets. The protocol enables Celo users and applications to trade between any two ERC20 tokens. Ubeswap increases Celo adoption by making it cheaper for users to trade on-chain by increasing liquidity.
In this article, we’ll cover:
- Why Use Ubeswap
- How to Connect a Celo Extension Wallet
- How to Trade CELO for cUSD
- What is Moola
- How to Lend cUSD to Moola
With a few steps, you’ll be able to provide liquidity to Celo and trade between tokens.
Why Use Ubeswap?
Ubeswap enables users to exchange tokens on Celo without having to trust anyone with their funds. This relies on liquidity pools, which means that you can also lend crypto to liquidity pools, and earn fees from that. On top of earning interest, you will also earn the native token, UBE.
Therefore, you can either use Ubeswap to trade between tokens, or you can provide liquidity, and earn interest and UBE when others trade between the token pair that you provide liquidity for.
As Celo is a mobile-first protocol, Ubeswap also acts as a mobile-first decentralized exchange (DEX), bringing DeFi to mobile users everywhere.
How to Connect a Celo Extension Wallet
To start trading, you will have to connect a wallet. First, open https://ubeswap.org/.
At the top right corner, click on Launch App.
Connect to Celo Extension Wallet
After launching, a new tab will open. Click on Connect to a Wallet in the top right corner.
You have the option of connecting MetaMask, a Celo Extension Wallet, or Ledger.
Choose the Celo Extension Wallet and add the extension to your browser if you haven’t already.
Once the extension is added, you will have the option of creating a new wallet or importing an existing one. Choose accordingly, and follow the prompts.
To set up, click on Create a Wallet and agree to the terms.
Go ahead and input your preferred password, then click on Create.
Retrieve your secret backup phrase and click Next.
Once you are done with the setup procedure, you will have successfully added a Celo Extension Wallet.
Now that you have installed the wallet:
- Go back to https://app.ubeswap.org/#/swap.
- Click on Connect to Wallet.
- Choose the Celo Extension Wallet.
A menu will be displayed on the right side where you can click on Next, then Connect.
Trading Celo for cUSD
Once you’ve connected, choose the tokens you would like to swap. There are various supported tokens, and you can check your options by clicking on the downward arrow after each token.
Any user can also create a new pair and add liquidity by clicking on Pool at the top of the exchange site.
Input the amount of tokens you would like to swap then proceed to swap. For example, swapping 1 Celo to cUSD will give you approximately 4.22cUSD. You will also be provided with the transaction details, including the liquidity provider fee.
Before you can swap your tokens, Ubeswap will require approval to use your Celo. This protects you from sending your assets to unknown addresses. Click on Approve Celo to continue.
The trading fees on decentralized exchanges like this go to liquidity providers. They earn fees when people trade tokens for the pairs they provide liquidity for.
To continue with your trade, confirm the transaction, and the swap will be processed.
For instance, if your pair is CELO/cUSD, when you trade tokens for this pair, liquidity providers will earn fees in return. The fees earned are proportional to the share of the pool they contribute to, and can be redeemed any time.
As mentioned before, you can not only use Ubeswap to exchange between tokens, but you can also become a liquidity provider, and earn trading fees. On top of this, Ubeswap also enables you to provide liquidity directly to Moola, another dApp on Celo.
Separate tutorial — What is Moola
Moola is an open-source protocol for decentralized money markets on the Celo blockchain. Moola enables liquidity providers to earn compound interest on their Celo, paid by borrowers who take over-collateralized loans in perpetuity or under-collateralized loans. Essentially, it allows for decentralized lending and borrowing on Celo.
Moola’s mission is to provide access to credit for creditworthy borrowers and access to yield for all liquidity providers.
How to Lend cUSD to Moola
To get started, visit Moola at https://www.moola.market/, and click on Launch App.
Next, click on Connect Wallet.
Connecting to MetaMask
There are only two wallets supported at this point, MetaMask and Ledger. We advise that you connect with MetaMask.
Go ahead and add the Celo network to MetaMask by clicking Approve on the menu.
Lending cUSD
Click on Deposit to get started, then input the amount of Celo you would like. Funds will be moved from your wallet onto Moola to start earning interest.
