Arbswap: What to Know Before You Swap or Farm
If you are moving from a centralised exchange to your own wallet, Arbswap is a decentralised Arbitrum exchange that uses liquidity pools for swaps and farming; you need tokens and ETH for gas on the same network. For an Arbswap token swap or liquidity position, Arbswap lets you trade, deposit into a pool and farm rewards. How Does the Arbswap Exchange Work? An automated market maker (AMM) quotes trades against liquidity pools funded by users instead of matching your order with another trader. Think of a pool as a vending machine stocked with two tokens: take one out, put the other in, and the price adjusts as its stock changes. Your wallet sends a transaction to a contract, which updates the pool balances and sends you the output tokens. Say a simple pool holds 100 ETH and 200,000 USDC: the starting price is near 2,000 USDC per ETH. Buying one ETH costs about 2,020 USDC before fees because that trade moves the pool price. A larger trade moves it further; the difference from the starti...