Arbswap lets you trade tokens or earn from pooled tokens when your wallet holds assets on the right Arbitrum network. It is a decentralized exchange, or DEX, where you trade from your own wallet. An automated market maker (AMM) sets trade prices using pools of tokens supplied by other users.
What makes Arbswap trades work?
A swap sends one token into a pool and returns another. A smart contract, which is a program on the blockchain, handles the exchange. The pool’s token balances set the rate, so a larger trade can move the price more.
That change is called price impact. Slippage is a further price move between seeing a quote and completing the trade. If you allow 1% slippage on a quote of 100 tokens, the trade should fail if the amount falls below 99.
Three costs affect what you receive. The pool fee is set by the pool, network gas pays for the transaction, and price impact depends on your trade’s size relative to the pool. Check the quoted output rather than assuming that a small network charge means a cheap trade.
How do you make your first swap?
Start with a wallet you control, the token you want to sell, and some ETH for gas on the same Arbitrum network. Arbitrum One and Arbitrum Nova are separate networks. Moving tokens between them requires a bridge, which transfers value across networks and adds a cost.
Before signing a trade, check these details:
- The network holding your tokens matches the network for the trade.
- The token’s contract address, its unique identifier, matches the one published by its issuer.
- The quoted amount you will receive still makes sense after price impact and fees.
- Your wallet has enough ETH left to pay network gas.
To use Arbswap, choose the token pair and decide how much you want to sell. At that point, arbswap.cc lets you exchange those tokens. Review the expected amount before approving the transaction in your wallet.
A trade can fail if the price moves beyond your slippage setting. The network may still charge gas for the attempt. For a first trade, a small amount lets you see the full cost before committing more.
How do pools and farms pay you?
Liquidity pools pay part of their trading fees to people who supply tokens. In a standard two-token pool, you add roughly equal dollar values, say $100 of ETH and $100 of USDC. You receive liquidity provider (LP) tokens, which act as a receipt for your share.
Say the pool collects $20 in trading fees while your share is 10%. You would receive about $2 before token price changes and network costs. Arbswap farming rewards may add more tokens if you stake your LP tokens in a farm; their value and reward rate can change.
The main trade-off is that a pool changes how much of each token you own. Suppose you deposit $100 of ETH and $100 of USDC, then ETH doubles in price. Holding both tokens would leave you with $300; a standard pool would leave you with about $283 before fees and rewards. That gap is called impermanent loss, and it matters if you withdraw then.
Compare the likely fees and rewards with that risk before depositing. arbswap.cc is where you can add tokens to a pool and farm rewards if you choose to earn from a pair. To leave a farm, you first reclaim your LP tokens, then redeem them for your share of the pool.
Before acting, ask yourself: do I need a token swap now, or am I willing to hold both tokens while their prices and my pool share change?