Theory

To Polkaswap means to exchange (swap) tokens on Polkaswap, Polkaswap is a non-custodial, cross-chain AMM DEX protocol for swapping tokens, Polkaswap removes trusted intermediaries and provides the opportunity for faster trading, and Polkaswap also combines multiple liquidity sources under a common liquidity aggregation algorithm, operating completely on-chain, in a trustless and decentralized way.

There are 3 main use cases for Polkaswap:

  1. Swapping tokens
  2. Providing liquidity
  3. Removing liquidity

Along with the network fee in XOR, all 3 cases require an additional fee - liquidity provider fee (LP fee). The LP fee is used to incentivise liquidity providers to supply liquidity in liquidity pools. Liquidity pools are described in this article.

Practice

We recommend using the SORA testnet for practice exercises. Here are the Testnet links:

  1. Polkaswap test application
  2. Polkadot js SORA testnet application
  3. Android testnet application
  4. iOS testnet application

In the practice section we'll Swap tokens. Providing and Removing the liquidity will be explained in subsequent articles.

Swapping tokens (Polkaswap)

Swapping tokens means exchanging from token A to token B. Polkaswap provides a user friendly interface for swapping tokens.

Open the Swap page.

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Then select the source asset (the asset you'd like to sell) and the destination asset (asset that you'd like to buy). Just click on the asset drop-down to select them.

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The assets from you wallet will be listed by default .

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You can find and add any asset by entering its ID or name in the search field. Whitelisted assets will be listed.

If you'd like to add a token that isn't whitelisted, then open the Custom tab and enter the asset ID.