ApeBond has revolutionized its decentralized exchange (DEX) into a cross-chain DEX aggregator through its partnership with Li.Fi (LiFi link). This new feature makes it easier for users to trade tokens across different blockchain networks. Now, users can move assets from one chain to another and swap tokens in one simple step. Before, they had to do several steps for bridging and swapping. This change makes using multiple blockchain networks more straightforward and faster.
How it works
A user has USDC on Polygon and wants to purchase ABOND on the BNB chain, they can easily use our Multi-chain DEX to transfer their USDC and convert it to ABOND in a single click on Polygon. This not only saves time but also eliminates the common hurdle of acquiring native gas tokens on the receiving chain. Additionally, users can continue to conduct token swaps exclusively within the same blockchain if they choose.
Supported Chains ⛓️
BNB Chain
Polygon
Ethereum
Arbitrum
Avalanche
Optimism
Fantom
zkEVM
Gnosis
Understanding Key DEX Terms
To effectively navigate and use a DEX aggregation service, it's essential to familiarize yourself with some fundamental concepts:
Fees 💸
Every token swap on ApeBond incurs a Routing Fee: 0.1% for stablecoins and 0.3% for other tokens. Additionally, it also incurs a DEX fee and a Bridge fee, the amounts of which depend on the specific routing path of your trade. (For example, 0.2% DEX fee for routing through the ApeSwap DEX).
Slippage 🎢
While token swaps do occur at very fast speeds on the blockchain, there can still be a (usually small) difference between the price you see when a user submits a swap transaction, and the price that applies when the transaction is recorded on the blockchain. This difference in prices is called "slippage".
When users submit a swap on the ApeSwap DEX, they select a "slippage tolerance" amount, which is the pricing difference that the user are willing to accept while the trade is executing. While slippage tolerance normally ranges between 0.10% and 1.00%, the default slippage tolerance is 0.50%. However, if the price difference between submission and confirmation of the trade exceeds that amount, the trade will fail. Users can increase the slippage far beyond the default of 0.50% if they choose, but must be careful to note that may have a significant impact on the amount of tokens they receive in return. The Minimum Received line will provide an estimate of the slippage impact of their trade.
If the token a user is trading has a reflect fee, then the slippage tolerance will need to meet or exceed the reflect fee percentage for the trade to succeed.
Price Impact 💰
Slippage occurs not only from the change in prices from other user's trades, but also from the trade submitted by an individual user. This is called "price impact", and it's expressed in percentage at the bottom of the swap module. If slippage tolerance is below the price impact of the trade, the trade will fail.
Price impact is dictated by the constant product formula. To learn more about the constant product formula, check out this in-depth explanation.
