Swap
The Swap service enables instant token exchanges on WEMIX.Fi without the need for traditional order books or centralized intermediaries. It operates through an automated market maker (AMM) model, where exchanges are executed against liquidity pools rather than matched with individual buyers or sellers.
When an exchange is initiated, the platform automatically routes the transaction through available liquidity pools to find the optimal exchange rate.
Key Features
Instant token exchanges without counterparties
Automatic exchange rate calculation and routing through liquidity pools
Transparent exchange rate calculations with slippage controls
Support for WEMIX and other WEMIX3.0 tokens
Fee Structure:
Two types of fees apply to every swap transaction:
Gas Fee (Network Fee): Paid in WEMIX to process the transaction on the WEMIX3.0 blockchain. Gas fees on WEMIX3.0 are significantly lower compared to other networks, costs approximately $0.01 ~ $0.05 per transaction.
Trading Fee: A small percentage (0.01%, 0.05%, 0.25%, or 1% depending on the pool) deducted from each trade and distributed to liquidity providers as compensation for providing liquidity to the pool.
Understanding Price Impact:
Price impact occurs when an exchange is large relative to the pool's available liquidity, causing the exchange rate to shift unfavorably during execution. High price impact (above 5%) signals that the exchange will move the exchange rate significantly, resulting in worse execution than the initially quoted rate. For example, swapping 1,000 WEMIX (valued at $1,000) in a pool with $100,000 liquidity typically results in approximately 0.5% price impact, while the same exchange in a $20,000 pool could cause 2-3% price impact.
The platform displays estimated price impact before confirmation, enabling informed decisions about exchange sizing. Exchanges with price impact exceeding 5% should be reduced in size or split into multiple smaller transactions to minimize losses.
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