W Swap FAQs

FAQs for W Swap

General Questions

W Swap is a decentralized exchange (DEX) built on the W Chain, functioning as a fork of Uniswap V2. It allows users to swap cryptocurrencies in a decentralized manner. Its key differentiator is an integrated cross-chain bridge that enables seamless asset transfers between W Chain and other supported blockchains.

W Chain is a high-performance Layer 1 blockchain solution designed for scalability, security, and low transaction costs. W Swap leverages W Chain’s capabilities to provide a fast and efficient trading environment.

The primary difference is W Swap ‘s integrated cross-chain bridge. While many DEXs require users to use separate, external bridges to move assets between chains, W Swap combines swapping and bridging into a single, seamless user interface, enhancing convenience and efficiency.

WCO is the native coin of the W Chain blockchain. It is used for transaction fees (gas), staking, and will play a crucial role in the broader W Chain ecosystem, including being a primary trading pair on W Swap.

Swapping and Liquidity

To swap tokens:

1. Connect your compatible Web3 wallet (e.g., MetaMask) to W Swap.

2. Select the input token you want to swap from and the output token you want to receive.

3. Enter the amount you wish to Swap.

4. Review the transaction details (including estimated gas fees and slippage).

5. Confirm the transaction in your wallet.

WLP stands for ” W Swap Liquidity Provider” token. When you provide liquidity to a token pair on W Swap, you receive WLP tokens. These tokens represent your share of that specific liquidity pool and your claim to a portion of the trading fees generated by that pool.

To provide liquidity:

1. Connect your wallet to W Swap.

2. Navigate to the “Pool” or “Liquidity” section.

3. Select the token pair you wish to provide liquidity for (e.g., WCO/USDT).

4. Enter the amount of each token you want to deposit (they must be deposited in equivalent value).

5. Approve the tokens for spending (if it’s your first time).

6. Confirm the liquidity provision transaction in your wallet. You will then receive WLP tokens.

Impermanent Loss (IL) is the risk of losing value when providing liquidity to an AMM (Automated Market Maker) liquidity pool compared to simply holding the assets. It occurs when the price ratio of the tokens in your pool changes after you deposit them. The larger the price divergence, the greater the impermanent loss. While providing liquidity allows you to earn trading fees, these fees may not always offset potential IL.

  • Trading Fees: Typically, a small percentage (e.g., 0.3%) of each swap is charged. A large portion of these fees are distributed directly to liquidity providers of the respective pool.
  • Bridge Fees: A small fee may be charged for cross-chain transfers to cover operational costs and maintain the bridge infrastructure.
  • W Chain Gas Fees: All transactions on W Swap, including swaps, liquidity provision, and bridging, will incur a small gas fee in WCO, the native token of W Chain.

Cross-Chain Bridge Question

The W Swap bridge enables the transfer of assets between W Chain and other supported blockchains. When you bridge an asset, your tokens on the source chain are typically locked or burned, and an equivalent amount of wrapped tokens are minted on the destination chain. The process is managed by a secure set of smart contracts and potentially a network of validators to ensure the integrity of the transfer.

Initially, the bridge will support key assets like major stablecoins (USDT, USDC) and possibly native tokens from other popular Layer 1 blockchains (e.g., ETH, BNB). The list of supported assets and chains will expand based on security assessments, technical feasibility, and community demand.

Transfer times can vary depending on network congestion on both the source and destination chains, as well as the bridge’s internal processing time. W Chain’s fast block times aim to minimize delays on its end.

Security and Transparency

Yes, W Swap ‘s smart contracts, including both the DEX and the cross-chain bridge components, undergo rigorous security audits by reputable third-party blockchain security firms. Audit reports will be made publicly available for transparency.

All W Swap smart contract addresses will be publicly available on W Chain’s block explorer, and links will be provided on the official W Swap website.

Transfer times can vary depending on network congestion on both the source and destination chains, as well as the bridge’s internal processing time. W Chain’s fast block times aim to minimize delays on its end.

Getting Started and Community

W Swap will support popular Web3 wallets such as MetaMask.

To connect:

  1. Visit the official W Swap website.
  2. Click the “Connect Wallet” button (usually in the top right corner).
  3. Select your preferred wallet from the options.
  4. Approve the connection request in your wallet. Ensure your wallet is set to the W Chain network.

You can find support and engage with the W Swap community through our official channels:

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