ParaSwap

ParaSwap combines multiple decentralized exchanges into a single place, so rates often beat the market price. ParaSwap combines orders from multiple exchanges into one secure and optimized transaction. GasToken.io (GST2) is also used when possible to reduce network fees. ParaSwap doesn't charge any transaction fees and is completely free. The user selects the token pair they wish to swap (eg. 1 ETH for 200 DAI). Paraswap offers the best rate and liquidity from the exchanges. Once a Swap order is confirmed, it is executed across all exchanges. ParaSwapPool is a private liquidity that our partners provide. It provides ParaSwap users with better liquidity and prices. Contact us if you are interested in becoming a ParaSwapPool liquidity provider.

ParaSwap is to DEXs what Expedia is to hotels — an aggregator. Similar to how Expedia searches for hotels from across many hotel booking sites and helps you find the best booking price without forcing you to switch between ten different tabs or apps, ParaSwap is a decentralized protocol that searches for the price of tokens from across the most popular decentralized exchanges on Ethereum and lets you swap your tokens at the best possible rate.

The platform recently launched its native token PSP that was airdropped to its existing users. PSP is the governance token of ParaSwap that offers its users the ability to propose and vote on changes they want on the platform. This is a huge step forward for ParaSwap as it makes the platform more decentralized and user-focused, and it has the potential to attract more crypto users.

If you’re still unsure why you should use ParaSwap instead of using a DEX directly, let’s check out some of the major advantages of using ParaSwap.

Very often, people prefer CEXs over DEXs and compromise with the ownership of their funds for a smoother trading experience. But ParaSwap kicks the complexity of DEXs out of the window and offers you a friendly interface to swap your assets while still ensuring that you remain in control of your assets.

Being a decentralized protocol, ParaSwap only requires you to connect your non-custodial wallet with it. That means, your assets always remain with you and only you control them. There’s no way ParaSwap could restrict you from accessing, transferring, or trading those assets.

Let’s say you want to swap ETH for USDT. You go to a crypto exchange but realize that it does not have the required liquidity for this token pair. You then go to a few other exchanges and see the same result before finally landing on that one exchange that has enough liquidity for you to swap your assets. Even then, you may have to deal with high slippage that can affect the final amount you receive for the swap.

This may not happen for asset pairs such as ETH-USDT, but it surely does for new tokens. For such cases, ParaSwap solves this issue. As a DEX aggregator, it brings together the liquidity of multiple exchanges into one platform.

This negates the need for you to go from exchange to exchange in search of liquidity. All you need to do on ParaSwap is type the tokens you want to swap and the platform does the searching for you. It then executes your trade either through one exchange or multiple exchanges where it finds sufficient liquidity. Through this, ParaSwap not only cuts down the time you spend on swapping but also minimizes the potential slippage on swaps.

Per the claims of the project founder, using ParaSwap to exchange your assets may save you between 5% to 10% due to the varying swap rates. And if you are an avid trader, that can make a huge difference in the short and long terms. ParaSwap achieves this by splitting the orders and using multiple DEXs to execute a swap, which results in the tokens being swapped at better rates. It may also first swap your tokens with a third token and then convert that to the token you requested. Doing so sometimes offers a better rate of exchange due to the difference in exchange rates of different token pairs.

Besides, as the fees across platforms vary considerably, ParaSwap also customizes its trades to minimize the fee you pay per trade. That makes it a double win.

Apart from the trading side of things, ParaSwap also comes with a highly user-friendly interface that resembles the Web2 applications that we are used to. This makes navigating through the platform and swapping tokens even more convenient, thus making people’s DeFi experience much better.