Swapping Assets

Minswap is a decentralised exchange (DEX) on the Cardano blockchain, allowing users to trade (swap) tokens seamlessly in a non-custodial and decentralised manner. Here’s an in-depth look at how swaps work on Minswap:

What Are Swaps on Minswap?

A swap on Minswap involves exchanging one Cardano-native token for another using liquidity pools. These pools are funded by liquidity providers who deposit pairs of tokens, enabling the automated trading process.

You will find that across all pools, the main trading asset with any Cardano token is ADA, with a few rare cases where liquidity pools have been set up between two exotic pairs. If you wish to swap two tokens for which a liquidity pool doesn’t exist, Minswap will route trades through multiple pools to swap your desired tokens. We’ll cover this topic of auto-routing more in another topic.

The key benefits of swaps on Minswap include:

• Access to Cardano Assets: Many high-quality projects only exist on Cardano.

• Decentralisation: No intermediaries or custodians are involved.

• User-friendly interface: Simple for both beginners and experienced users