ParaSwap is a middleware streamlining users' interactions with various DeFi services.
It gathers liquidity from the main decentralized exchanges (DEXes) together in a convenient interface, abstracting most of the swaps' complexity to make it convenient and accessible for end-users.
For any given trade, ParaSwap checks the rates on all supported DEXes and implements further optimizations to get the best rate possible.
ParaSwap can be used directly through ParaSwap's web and iOS mobile app or indirectly through the many dApps integrating it:
List made for illustrative purposes, not exhaustive.
Everything starts with input from the user, providing the desired token pair (e.g. ETH/DAI) and the target amount (either on the swapped token or destination token). From this, ParaSwap provides:
💰 Prices: ParaSwap looks at all the pools available for the given token pair to figure the price and available liquidity on each.
🎯 Pathing: Using the data collected before + accounting for the trade size, ParaSwap suggests an optimal route that can include several splits and additional hops if needed to achieve a better price.
👌 Execution: The user unlocks the token to be used and approves the transaction to execute the swap. Once the transaction clears, the source tokens are removed from the wallet, and the user receives the destination tokens.
💸 Positive Slippage: If relevant, the user might receive slightly more destination tokens than anticipated, thanks to the positive slippage.