Instant Swaps with the Lowest Fees — Try on Testnet
Spin is thrilled to announce the testnet release of a new feature — instant one-click swaps through the on-chain order book that boasts the best swapping fees in the NEAR Protocol ecosystem!
Trading through an order book is traditionally cheaper than AMM swapping because AMMs have to pay liquidity providers the fees paid by users to incentivize them to keep sufficient liquidity. Order book DEXes don’t have traditional liquidity pools, thus their fees are lower. On Spin, for example, on the NEAR/USDC market takers pay 0.1% where 0.05% goes to makers and another 0.05% — to the treasury fund. As for USN/USDC, the taker fee is 0.04% and the maker’s rebate is -0.02%. At the same time, NEAR Protocol’s largest AMM Ref Finance charges 0.3% from swappers. Long story short, same instant swaps with lower fees — sounds attractive, right?
How to swap on Spin?
So how does the Spin swapping actually work? You as a user just need to select the trading pair you’re interested in, insert the amount, and click on the swap button. This immediately creates a market order in the order book with instant execution — no more actions are required. Spin aims at providing our users with minimum spreads and the most accurate prices, so users will definitely enjoy the swapping experience.
In the order book, bids and asks are created by makers who earn 50% from the fees paid by takers (people who actually take the liquidity from the market). When a market order is executed, it uses the best bid or ask price until filled.
Say, you want to swap 5 NEAR for USDC. The best ask price is 10 USDC per NEAR, but there are only 30 USDC available at this price level. The next best price is 9.99 USDC. In this case, 3 NEAR will be exchanged for 10 USDC and the remaining 2 NEAR will be exchanged for 9.99 USDC.
Easy, transparent, convenient! You can always check how much liquidity the order book has at every price level, so the math here is super obvious.
Furthermore, the order book prices are more accurate compared to AMMs: market makers constantly rebalance the liquidity according to the index price sourced from several centralized and decentralized exchanges. If the liquidity is deep, the execution of a large order will not result in the price fluctuation as it happens on AMM DEXes that calculate the price depending on the amount of paired tokens in the liquidity pool.
Swapping through the Spin order book has the same flow for users as on some well-known AMMs. Deposits and withdrawals users need to do manually on the Spin order book DEX are executed automatically for swaps, with no extra actions required. The swap interface and operation flow are absolutely similar to what you’re used to! Please note that Spin currently has some limits set for traders, they are also relevant for swappers. These limits will soon be increased and until that you can simply make several swaps to exchange the amount that exceeds the limits.
A small educational part is over, so we invite you to try the Spin swapping feature right away on the NEAR Protocol testnet and share your feedback on Discord, and Twitter (don’t forget to tag @spin_fi), or simply by submitting the feedback form on the DEX.
We plan to release swapping to mainnet next week, so early testers’ feedback is much appreciated!