Swap
Last updated
Last updated
NeuraSwap's decentralized exchange (DEX) allows users to swap between AI tokens in the most efficient way possible. This is incredibly useful for providing tokenized AI data access to AI agents in a permissionless way.
Read below to learn the basics of swapping, or continue to the How to Swap page to for instructions on use the NeuraSwap DEX to swap tokens.
Swapping tokens is one of the most fundamental functions of an AiFi DEX. Decentralized exchanges like the NeuraSwap DEX allow users to send their AI tokens into the protocol and receive as close to an equal value of another token as possible, after accounting for transaction fees, slippage, and price impact.
In the world of AiFi, smart contracts dictate each step of a swap transaction, with no human or centralized intermediaries involved. This gives users several advantages relative to traditional or centralized currency exchanges, including:
Fast transaction speeds
Permissionless trading
Flexibility and access to a wide variety of tokens
Markets that are always open
Most importantly, swapping between tokens allows users to take advantage of unique opportunities within AiFi. For example:
A user who wants to buy a protocol utility token, like NEU, can use the NeuraSwap DEX to swap it with an existing token, such as the GPT Chain protocol token ($GPT) or a stablecoin ($USDC). The user now has a utility token which they can hold, stake to earn rewards, or convert back to NEU to participate in governance.
A user who is interested in supporting a particular AI project on GPT Chain can use the NeuraSwap DEX to buy a listed project's token with NEU, USDC, or any other of the tokens listed on the DEX. At any time, they are free to swap tokens at fast speeds without the permission of an intermediary.
A user who wants to consolidate AI tokens into stablecoins to add stability to their portfolio can use the NeuraSwap DEX to trade their project tokens for USDC or any other listed stablecoins at any time, for any reason, without requesting permission from a centralized source.
Trading Fees
NeuraSwap collects a Routing Fee of every time users swap tokens on the exchange. The Routing Fee averages 0.2% of the value of the trade. Occasionally, an LP fee will also be included, depending on how the trade is routed. A portion of the fees goes to the NeuraSwap Treasury, and a portion is distributed to liquidity providers.
Slippage
While AI token swaps do occur at very fast speeds on the blockchain, there can still be a (usually small) difference between the price you see when a user submits a swap transaction, and the price that applies when the transaction is recorded on the blockchain. This difference in prices is called "slippage".
When users submit a swap on the NeuraSwap DEX, they select a "slippage tolerance" amount, which is the pricing difference that the user are willing to accept while the trade is executing. While slippage tolerance normally ranges between 0.10% and 1.00%, the default slippage tolerance is 0.50%. However, if the price difference between submission and confirmation of the trade exceeds that amount, the trade will fail. Users can increase the slippage far beyond the default of 0.50% if they choose, but must be careful to note that may have a significant impact on the amount of tokens they receive in return. The Minimum Received line will provide an estimate of the slippage impact of their trade.
If the AI token a user is trading has a reflect fee, then the slippage tolerance will need to meet or exceed the reflect fee percentage for the trade to succeed.
Price Impact
Slippage occurs not only from the change in prices from other user's trades, but also from the trade submitted by an individual user. This is called "price impact", and it's expressed in percentage at the bottom of the swap module. If slippage tolerance is below the price impact of the trade, the trade will fail.
Price impact is dictated by the constant product formula.
Continue to the How To Swap page to learn how to trade on ApeSwap's DEX.
