Swapping: Exchange a Token for Another on DEX
A DEX, or a Decentralized Exchange, is a trading platform where investors can place orders and make trades without an intermediary managing the ledger or controlling the funds. Essentially, a DEX utilizes smart contracts to facilitate trades between peers in a trustless environment.
With the rapid growth of the Fantom ecosystem and the increase in investment interest in Fantom’s bustling DeFi landscape, a large sum of crypto assets is flowing into Fantom Opera. DEX enables the exchange of these assets with tokens in the Fantom ecosystem. And the most common form on a DEX used to exchange assets is AMM, i.e., Automated Market Maker where liquidity providers and yield farmers are the primary sources of liquidity for such Decentralized Exchanges. These actors are financially incentivized by the DEX to lend their crypto assets in return for monetary rewards, like the DEX tokens.
So then, What is Swapping?
Swapping is the process where investors trade their assets of one kind into that of another on a DEX.
For example, swapping 100 DAI to $FTM that is worth $2 will essentially convert 100 DAIs to 50 $FTMs.
Token swapping is exclusively performed on a DeFi protocol, particularly a DEX. These decentralized exchanges are non-custodial and rely on liquidity delivered by other users through the means of yield farming or liquidity mining.
How to Swap (With an Example)
In the steps below, we will show you how to swap 100 DAIs to $FTM tokens using Spookyswap.finance. Note that the swapping steps outlined below will remain the same for any other tokens you want to swap as well.
Before we begin, please ensure that you have your MetaMask wallet setup and you have some $FTM tokens already in it to cover swap fees. We have a documented guide for you to follow in case you want to first set up MetaMask.
Now, let us begin!
Step 1: Navigate to Spookyswap and connect your MetaMask wallet
- Go to: https://spookyswap.finance/swap
- You will be requested by MetaMask wallet to log in and connect your wallet. Provide your credentials and connect the MetaMask wallet to Spookyswap.
Step 2: Select tokens to swap from and tokens to swap to
After you have connected your wallet to Spookyswap, you can now provide the token you want to swap and the token you want to swap to.
In the screenshot below, we have set “From Token” as DAI and “To Token” as $FTM.
Notice the Balance shows the current balance of these tokens in your MetaMask wallet.
Now, provide the number of DAI tokens you want to swap to receive $FTM tokens.
In the screenshot below, we have set 100 DAI to swap into $FTM tokens. As soon as you provide the number of DAIs to swap, Spookyswap will estimate the number of $FTM tokens you will receive after the swap including the fees that you pay for this transaction. In the example below, we will receive 47.9206 $FTM and pay only 0.2 DAI fees. Sweet!
Step 3: Swap
You can click Swap button to initiate swapping. As you do, your wallet will ask you for your permission to approve the swap operation. You will then see the Transaction Submitted screen that confirms your transaction has been submitted to the fantom network.
To check the swapping progress, you can click on View on ftmscan, or view the activity link in your wallet.
And that is it! Congratulations on swapping those DAIs to $FTM tokens!
Once the process is complete, you are free to explore the benefits of the Fantom DeFi ecosystem, including the stable returns offered by FantOHM DAO!
We publish guides and important project updates regularly on our Medium. Don’t forget to check them out.
FantOHM DAO has a diverse suite of features to provide users with stable returns on their investments and we’re continuously working to add more. We aspire to simplify investing, maximize returns for our investors, and build everlasting trust.