Quick Guide for Swapping on OpenSwap
In this section of the documentation, we aim to provide some tips and guidance to help users with making swaps on the OpenSwap platform. Currently, OpenSwap supports PancakeSwap V1/V2 and BakerySwap, more platforms will be integrated as the project continues to develop.
What is Automated Market Maker (AMM)?
An automated market maker (AMM) is a system that provides liquidity to the exchange it operates in through automated trading. AMM replaces conventional order books by utilizing the liquidity pools concept. Participating in liquidity pools is simple, users can participate in liquidity pools if they are able to provide both tokens to the pool. For example: a user can provide to an existing pool by providing USDT and DAI, with the proportional ratio given on the pool.
AMM cannot be manipulated. In the case where if someone wants to manipulate the price, they need to provide the given token, an exponential amount which becomes against their favor. AMM is a decentralized exchange in comparison to traditional order book which is a centralized exchange.
Currently, in the market, there are many popular AMM Decentralized Exchanges (DEX), such as the likes of:
Uniswap V2 and SushiSwap on Ethereum Chain; and
PancakSwap and BakerySwap on Binance Smart Chain.
AMM follows the below constant product formula to determine the price:
Important remind when using MetaMask
When entering OpenSwap through openswap.xyz for the first time, users should ensure to have their MetaMask wallet enabled. When the user's MetaMask indicates a number in the icon, it means that MetaMask is asking the user for a request such as: Permissions, Send Transactions, or Sign Transactions.
Adding Binance Smart Chain to MetaMask
Binance Smart Chain is a blockchain that is based on the Ethereum blockchain, and some of its significant attributes are faster transactions and cheaper transaction fees in comparison to Ethereum.
Configuring Binance Smart Chain to support MetaMask network is easy, user simply just visit Chainlist's website: https://chainlist.org, navigate to 'Search Networks', and search for 'Binance Smart Chain'. Once the result shows up, simply click on 'Connect Wallet'.
Understanding and Navigating through OpenSwap's Swap UI
Selecting Tokens: To select the desired token, users simply copy the BEP20 address and add a token to MetaMask. Search or paste the address into MetaMask, and import the token by pasting the BEP20 address.
Buying & Selling Tokens:
To buy and sell tokens on OpenSwap, the user will essentially be conducting a swap. Users may select two different tokens to swap. 'From' represents the token that you want to sell, and 'To (estimated)' represents the token you want to buy. On 'Estimated', it will indicate the minimum or maximum amount received.
By clicking on the 'Advanced Settings' button, the advanced settings window will pop up. On which the window will show the following:
Slippage Tolerance: This is a limit set on how many tokens a user is willing to accept, based on a percentage amount.
Transaction Deadline: This is to determine how long a user would allow the transaction to be kept pending before it gets rejected.
Toggle Expert Mode: By enabling this (toggle on), users will be enabled to conduct swaps that are over 15% price impact.
Show Optimized Routes (Multi-Hops):
When this functionality is toggled on, it will allow OpenSwap to show the user the available exchanges that support multi-hops. Multi-hops basically means it will allow the user to give the best optimal prices (for a trade-off for additional gas price). Below is an example of BakerySwap that is hopping from BNB > USDT > OSWAP.
Want to learn more about OpenSwap? Should community members have further questions on platform functionalities, or would want to express ideas to the team of ways that OpenSwap can provide improved support to platform users, please feel free to get in touch with core team members on OpenSwap telegram group: https://t.me/openswapdex
To interact with our products, please explore the links below:
OpenSwap Exchange: https://www.openswap.xyz/#/swap
OpenSwap Pool: https://www.openswap.xyz/#/pool
OpenSwap Staking: https://www.openswap.xyz/#/staking
OpenSwap Liquidity Queues: coming soon!
OpenSwap Yield Farms: coming soon!
OpenSwap Inter-Chain Bridge: coming soon!
And don't forget to follow us on Twitter to obtain the latest update on OpenSwap's project development, please join our Twitter here: https://twitter.com/openswapdex