Swapping Explained
Last updated
Last updated
In DonutSwap, the swap feature enables traders to exchange tokens between different trading pairs. When conducting a token swap, users incur a trading fee. Liquidity for these exchanges is supplied by liquidity providers, who contribute their tokens to various liquidity pools.
The platform offers different swap modes:
Aggregator (V3): This mode operates through the integration of the Paraswap or OpenOcean API. It amalgamates the functionalities of both DonutSwap V3 and V2 Automated Market Makers (AMMs).
V2: This mode is solely dedicated to utilizing the DonutSwap V2 Automated Market Maker.
For tokens that have a unique transfer fee, adjusting the slippage settings based on the guidance provided by the token's creators might be required. Additionally, it is advisable to utilize exclusively the V2 swap functionality.
Before initiating the swap, please make sure you are satisfied with the output parameters, such as price impact, minimum received, and rates