Swap
Last updated
Last updated
Swapping tokens on Bluefin’s CLMM is designed for efficiency:
Minimal Slippage: Our CLMM design helps reduce price impact, even for large swaps.
Real-Time Pricing: Get accurate price quotes for swaps.
Multiple Token Pairs: Access a wide range of token pairs.
To perform a swap:
Select tokens from the drop-down menus.
Enter the amount you want to swap.
Review quoted rate, slippage percentage, and minimum output amount before proceeding.
Click "Swap" and confirm in your wallet!
You can view a complete Swap tutorial
Swaps are the core function of any decentralized exchange (DEX) like Bluefin. A swap is simply an exchange where users trade one token for another directly from a liquidity pool rather than an order book (like on traditional exchanges). When you swap, a small transaction fee is deducted, which goes to the liquidity providers (LPs) who supply tokens to the pool.
In Bluefin, swaps are executed against a Concentrated Liquidity Pool, not a sequence of timed orders like in orderbook models. This means that trades happen instantly at the pool’s set rate, allowing LPs to earn fees based on the liquidity they contribute without needing to actively manage orders. Additionally, Bluefin's Concentrated Liquidity Pools enable LPs to claim their accrued fees and rewards without closing their positions (removing their liquidity).
Every swap on Bluefin has a fee that goes directly to liquidity providers as a reward for their contribution. However, in Bluefin’s concentrated liquidity pools, only liquidity within the active price range earns fees. If the pool price moves outside a specific range, the liquidity in that range becomes inactive and temporarily stops earning fees until it returns to the active price range.
Fees are collected separately, and LPs can claim their earnings at any time without needing to withdraw their liquidity. This setup ensures that fees are distributed fairly based on where liquidity is actively being used.
Price impact is the effect of a swap on the token price within the pool. In a DEX like Bluefin, token prices adjust based on the pool’s balance. A large swap can shift this balance significantly, leading to a notable price impact—especially in smaller pools with less liquidity.
When there’s deeper liquidity at a certain price range, the price impact of a swap will be smaller, allowing for smoother trades with minimal price changes.
Slippage is the difference between the expected price of a swap and the actual price at execution. Prices in a DEX can fluctuate during the few moments a transaction is processing, leading to potential changes in the final price.
To protect users from excessive slippage, Bluefin allows users to set a slippage tolerance, which defines the maximum price deviation they are willing to accept. If the slippage exceeds this set tolerance, the transaction won’t go through, safeguarding users from unexpected price shifts.