A User Guidance to Decentralized Exchange on Flow Blockchain
1. Connect Wallet
The first step is to connect the app with a wallet so we can use the decentralized exchange (dex) products. In this case we’ll go ahead with the Blocto wallet. It is also possible to connect with your Lilico wallet. Support for the dapper wallet could arrive sometime later in Q3.
At this stage it will require your email for sign in/register, a one time passcode will be sent to your email. If you’re a frequent Blocto user, it might also automatically connect.
2. Swap
Let us take a look at the swap feature. Here the user can choose which tokens she wants to trade. The input token equals the token you currently own and want to trade for another token (output token).
2.1 Multihops/Router
The increment.fi swap supports multihops/router, which means that the swap will make sure that you end up with the maximum amount possible for your given output token.
2.2 Support celer bridge token
We also support Celer bridged tokens (ceTOKEN). The Celer cBridge is a cross-chain token bridge with deep liquidity for users. Currently eight assets are supported which you can see on the screenshot below.
Learn more about Celer & FLOW here
2.3 Search and Import any Token
What if the token you want to trade cannot be found in the drop-down list? As long as you know the token contract address, just paste it into the search bar and click “Search More”. Clicking the “Import” button to import it into the default token list and everything is set up.
2.4 Swap Settings
The users can also adjust their swap settings, if they think this increases their chances of a successful transaction. This includes the following parameters:
- Slippage limit: you may set a new slippage limit. Please note that increasing your slippage limit may result in an unexpectedly bad exchange rate. Your transaction may be frontruned.
- Transaction deadline: you may extend the transaction beyond the standard 30 minutes. However, please note that this may lead to your trade executing at a subpar exchange rate as the market price may change during that time.
- Enable mulithops: this option is by default turned on. This is for the routing algorithm to calculate and split a trade into multiple paths to achieve the best output.
3. Liquidity Pools
Besides the swap, the user can decide to become a liquidity provider. This means that the user will add two different tokens into a liquidity pool and form a pair or add to an existing pair.
The first liquidity provider is the one who sets the initial price of the pool. They are incentivized to deposit an equal value of both tokens into the pool.
The liquidity providers will receive a part of the transaction fees as a reward but take note that being a liquidity provider comes with the risk of impairment loss.
3.1 Create a New Pair
As mentioned before, a user can create new pairs for tokens that are not yet in the liquidity pool, for example:
Once the pair is created, other users can add $MY/$ceUSDT liquidity to the pool.
For liquidity pairs that already exist, the page will show that the pair already exists.
