🔄HavenSwap
HavenSwap is the native exchange protocol on Haven1 Testnet that empowers users to trade cryptocurrencies directly from their decentralized wallets, eliminating the need for traditional centralized exchanges. By leveraging an automated market maker (AMM) system, HavenSwap enables instantaneous and efficient trading of digital assets, without relying on traditional order books.
The power of liquidity pools
At the heart of HavenSwap lies its ingenious use of liquidity pools. These pools are a collection of funds contributed by users, designed to facilitate seamless trading. Each pool typically contains two assets, such as ETH, and a specific token like USDC. All transactions within HavenSwap are securely and automatically executed through smart contracts, ensuring transparency and trust.
How HavenSwap's AMM works
HavenSwap's AMM model utilizes a constant product formula to maintain balance within the liquidity pools, enabling smooth and frictionless trades. When a trade is executed, the smart contract automatically adjusts the asset prices based on the trade size and the reserves in the liquidity pool. This ensures that the trading pair's value remains balanced, providing a stable environment for traders. Learn more about the AMM Model.
Executing trades on HavenSwap
Step 1: Accessing HavenSwap
Via Haven1 ecosystem: Access through the Haven1 Ecosystem page.
Direct access: Visit the HavenSwap protocol website directly.
Step 2: Trading process
Select tokens: In the 'From' field, choose the token you want to exchange (e.g., H1), and in the 'To' field, select the token you want to receive (e.g., ETH).
Enter trade amount: Input the amount in the 'From' field. HavenSwap will automatically show the estimated amount of the second token you will receive.
Set slippage tolerance: Adjust the slippage tolerance to set the maximum acceptable price difference during the trade.
Review and confirm: Double-check the trade details, including the token pair, trade amount, and slippage tolerance.
Adding liquidity on HavenSwap
Access the pool: Navigate to the 'Pool' tab on HavenSwap and select your desired token pair (e.g., H1/ETH).
Add liquidity: Click 'Add Liquidity' and input the amounts of each token you want to contribute, ensuring balanced values.
Review and confirm: HavenSwap will show the number of LP tokens you’ll receive. Review and click 'Supply' to proceed.
Confirm transaction: Approve the transaction in your wallet, checking the gas fee.
Liquidity added: Once confirmed, you’ve successfully added liquidity. Check your liquidity position in the 'Your Liquidity' section.
HavenSwap is a powerful tool for trading cryptocurrency and liquidity provision on the Haven1 network. By following this guide, users can effectively engage in trading activities and contribute to liquidity pools, benefiting from the platform’s innovative features and efficient trading mechanisms.
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