In decentralized finance (DeFi), a swap lets you trade one cryptocurrency for another directly, without needing a middleman like a centralized exchange. Swaps are a core feature of DeFi platforms, allowing users to exchange tokens quickly and efficiently.

Dexlyn makes this process simple and secure. As a decentralized exchange (DEX), it uses smart contracts to handle the swap automatically, giving users full control over their assets. Whether you’re swapping tokens for trading or liquidity purposes, Dexlyn provides a smooth and reliable experience within a decentralized setup.

How Do Swaps Work?

A crypto swap is a direct exchange of one token for another, using smart contracts to execute the trade. Unlike centralized exchanges, swaps happen directly between users without relying on an intermediary. The smart contract automatically handles the process, making it fast and straightforward.

Mechanics of a Swap

Swaps on decentralized exchanges (DEXs) are fueled by liquidity pools and Automated Market Makers (AMMs). Liquidity pools are collections of tokens provided by users (liquidity providers) to facilitate trades. When you swap tokens, the AMM algorithm adjusts the pool’s reserves and calculates the token price based on supply and demand. Liquidity is crucial here — more liquidity means better pricing and less slippage during trades.

Advantages of Swaps

Swaps offer several benefits for users. They allow for instant trades, without waiting for buyers or sellers like on traditional exchanges. There’s no need for a middleman, giving you full control over your assets and reducing fees. Plus, you can swap tokens without having to move your assets into centralized wallets, keeping everything in your control.

Atomic Swap vs Cross Chain Swap

Atomic Swaps

Atomic swaps are a method of trading two different cryptocurrencies across separate blockchains without the need for a centralized exchange. These swaps are secured through a special mechanism known as a hash timelock contract (HTLC). The HTLC ensures that either both parties complete the transaction or the swap is automatically canceled. If one party fails to complete their part of the trade within a set time, the transaction reverses, and both participants keep their funds. This setup makes atomic swaps secure, preventing any risk of loss during the process.

Cross Chain Swaps

While atomic swaps also allow trading across blockchains, cross-chain swaps offer a more flexible solution when supported by the underlying network. Cross-chain swaps allow users to trade tokens across different blockchains, with the system handling the technical details of transferring assets between chains. In the case of Dexlyn, while current support is limited to the Aptos and Supra networks, its architecture will eventually allow for smooth cross-chain swaps as it expands to include more blockchains in the future.

How to Do a Swap on Dexlyn?

Here’s a simple step-by-step guide to performing a swap on Dexlyn.

Step 1: Connect your Web3 wallet

First, you’ll need to connect your Web3 wallet to the Dexlyn platform. Dexlyn supports popular wallets, so just choose your preferred option and link it to the platform.

Step 2: Select the tokens

Once your wallet is connected, select the tokens you want to swap. Make sure there is enough liquidity in the pool for the tokens you want to trade.

Step 3: Enter the amount

Enter the amount of the token you wish to swap. Dexlyn’s interface will automatically calculate the equivalent value in the token you’re receiving based on the current liquidity pool.

Step 4: Select Slippage

Next, choose your slippage tolerance. You can either manually enter a percentage or go with the default automatic slippage set at 0.5%. Slippage is important to account for potential price changes during the transaction.

Step 5: Review the transaction details

Before confirming the swap, review the transaction fees, platform fees, impact on pool reserves, and the final amount you’ll receive. This is where you’ll see any fees that apply and get a final look at the exchange rate.

Step 6: Confirm and complete the swap

Once everything looks good, confirm the swap. The transaction will be processed, and within moments, the tokens will be in your wallet. Unlike centralized exchanges, you remain in full control of your funds at all times — your assets never leave your wallet.

Benefits of Using Dexlyn for Swaps

Dexlyn makes swapping tokens easy with its straightforward interface. Powered by the Supra’s vertically integrated, all-in-one, layer 1 network, Dexlyn offers fast transaction times, so you won’t be stuck waiting for confirmations. Plus, thanks to its Automated Market Maker (AMM) model, the platform minimizes slippage, giving you a more accurate exchange rate during your swaps.

Which Tokens Can You Swap on Dexlyn?

Supported Tokens

Currently, Dexlyn supports token swaps on the Aptos and Supra networks. This includes a range of tokens native to these ecosystems, allowing users to trade across these compatible chains. As Dexlyn continues to grow, the list of supported tokens and blockchains will expand, offering more variety for users looking to diversify their portfolios. Future plans include support for chains such as Sui, Ethereum, Solana, and many more.

Future Token Support

In the future, Dexlyn plans to support additional blockchains and their tokens. As compatibility expands beyond Aptos and Supra, users will be able to swap tokens from a wider selection of networks. This opens the door to greater flexibility and more trading opportunities on the platform.

Wrapping It Up

Swaps are a key part of decentralized finance, allowing users to trade one token for another directly through smart contracts. On Dexlyn, swaps are handled using an Automated Market Maker (AMM) model, facilitating smooth and reliable trades.

Ready to start trading? Connect your Starkey wallet to Dexlyn and experience fast, easy swaps. With more tokens and networks on the way, early users will enjoy exclusive rewards — details coming soon!