Baptswap Documentation
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On this page
  • Introduction
  • Understanding Swaps on Baptswap
  • Basic Swap Mechanism
  • Protocol vs. Web Interface
  • Automated Market Maker (AMM) Model
  • Key Considerations in Swapping
  • Price Impact
  • Slippage
  • Additional Token Fees
  • Safety Checks in Baptswap Protocol
  • Common Safety Measures
  • Conclusion
  • Support and Assistance
  1. Baptswap Concepts
  2. Concepts

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Last updated 1 year ago

Introduction

Baptswap facilitates seamless swaps on the Aptos Network, allowing users to trade tokens in a straightforward and permissionless manner. This guide explains the key aspects of swapping tokens using the Baptswap protocol.

Understanding Swaps on Baptswap

Basic Swap Mechanism

  • Process: Users select a token they own and a token they wish to acquire.

  • Execution: The swap sells owned tokens for the desired tokens, minus the swap fee (awarded to liquidity providers) and any Fee-on-Transfer Taxes, if applicable.

Protocol vs. Web Interface

Automated Market Maker (AMM) Model

Swaps on Baptswap are executed against a pool of liquidity, not on a first-in-first-out basis like traditional order book trades.

Liquidity providers earn fees proportional to their capital commitment. Learn more about Fees on Baptswap.

Key Considerations in Swapping

Price Impact

Definition

Price impact is the change in execution price due to the size of the market order against available liquidity.

AMM Dynamics

The relative value of assets shifts continuously during a swap, affecting the final execution price.

Liquidity and Price Impact

The amount of liquidity at different price points influences the price impact. More liquidity equals lower price impact, and vice versa.

Interface Display

The Baptswap interface provides real-time estimates of price impact and warnings for unusually high impacts.

Slippage

Definition

Slippage refers to price changes that occur while a transaction is pending.

Gas Fee and Execution Order

The amount of gas fee influences the transaction's execution speed. Lower gas fees can lead to longer pending times and potential price changes.

Slippage Tolerance

Users set a slippage range within which the transaction will execute. Transactions fail if the execution price falls outside this range.

Additional Token Fees

Some tokens on Baptswap may have additional fees. Transactions may fail if the slippage is set too low to cover:

  • Price Impact Percentage

  • Individual Token Fees (for both X and Y tokens)

  • Network Gas Fees

Safety Checks in Baptswap Protocol

Common Safety Measures

  • Expired Transaction: Cancels a swap pending longer than a predetermined deadline to avoid price changes over extended periods.

  • INSUFFICIENT_OUTPUT_AMOUNT: Protects against drastic unfavorable price changes. If the output amount deviates significantly from the estimated amount (beyond slippage tolerance), the swap is canceled.

Conclusion

By understanding price impact, slippage, and Baptswap’s safety checks, users can effectively navigate the swapping process. Remember to account for additional fees and network conditions to ensure successful transactions.

Support and Assistance


  1. Proportional in this instance takes into account many factors, including the relative price of one token in terms of the other, slippage, price impact, Fee-on-Transfer and other factors related to the open and adversarial nature of Aptos. ↩

  2. For information about liquidity provision, see the liquidity user guide. ↩

  3. To learn more about Fee-on-Transfer tokens, see the Fee-on-Transfer page. ↩

  4. The Baptswap interface informs the user about the circumstances of their swap, but it is not guaranteed.↩

Note: Swapping via web interfaces may introduce additional permission structures and differ in execution behavior from using the Baptswap protocol directly. For more details, see .

Need help with launching or migrating your token to Baptswap? Connect with us on or for assistance.

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