DeFiBeginner

Swap

An exchange of one asset for another, often executed through a blockchain trading protocol.

PLAIN-ENGLISH DEFINITION

In more detail

A swap can use one pool or take a route through several. The quote is based on conditions when it's calculated, while execution happens later. Contracts can enforce limits such as a minimum output, so an unfavorable price move may make the transaction fail rather than complete at a price you didn't accept.

IN THE WILD

How you might use it

You swap one token for another and check the minimum received, route and contract request before confirming in your wallet.

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By Crypto Dictionary · Published · Updated

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An original explanation with a reference to follow. Protocol details and community usage can evolve. Sources & standards

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