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Swaps

Swaps are executed directly against liquidity pools without order books or intermediaries.

How Swaps Work​

Step-by-Step Process​

  1. Approve token spending - Grant the contract permission to access your tokens
  2. Send swap transaction - Submit your swap request on-chain
  3. Contract calculates output - Smart contract determines output based on reserves
  4. Tokens exchanged - Atomic swap executes instantly on-chain

All swaps happen in a single transaction with guaranteed execution or revert.

Swap Properties​

All swaps are:

✅ Non-custodial - You never lose custody of your assets

✅ Transparent - All pricing logic is visible on-chain

✅ Immutable - Contract logic cannot be changed after deployment

✅ Gas-efficient - Optimized for low transaction costs

✅ Instant - Settle in a single blockchain transaction

Pricing Calculation​

Price is determined by the constant product formula:

amountOut = (amountIn × reserveOut) / (reserveIn + amountIn)

Example:

Pool has 1000 Token A and 10 Token B:

  • You swap 100 Token A
  • You receive: (100 × 10) / (1000 + 100) = 0.909 Token B
  • New reserves: 1100 Token A, 9.091 Token B

Slippage​

Slippage is the difference between expected and executed price.

Causes:​

  • Large trades relative to pool size
  • Other trades executing before yours
  • Network congestion delaying execution

Protection:​

Set a maximum slippage tolerance:

  • 0.5% - Low slippage, may fail in volatile markets
  • 1-3% - Balanced for most trades
  • 5%+ - High tolerance, useful for illiquid pairs

If the price moves beyond your tolerance, the transaction reverts to protect you.

Trading Fees​

Each swap includes a small fee:

  • Default: 0.3% of the swap amount
  • Fee split:
    • 0.25% to liquidity providers
    • 0.05% to protocol treasury

Fees are automatically added to the liquidity pool, increasing LP token value.

Advanced Features​

Multi-hop Swaps (Future)​

Route through multiple pools for better prices:

Token A → Token B → Token C

The router automatically finds the optimal path for your swap.

Deadline Protection​

Set a deadline for your swap:

  • If execution takes longer than deadline, transaction reverts
  • Protects against stuck transactions in mempool
  • Prevents execution at stale prices

Minimum Output​

Specify minimum output amount:

  • Transaction reverts if output is less than minimum
  • Protects against excessive slippage
  • Useful in volatile market conditions

Swap Interface​

Connect your wallet and swap directly through the GO Swap interface:

  1. Connect Wallet - MetaMask, WalletConnect, etc.
  2. Select Tokens - Choose input and output tokens
  3. Enter Amount - Specify how much to swap
  4. Review Details - Check price, fees, slippage
  5. Confirm Swap - Approve transaction in wallet
  6. Done - Tokens arrive instantly

For developers, integrate swaps programmatically via smart contract calls or REST API.