Swap FAQ
Last updated
Last updated
A swap is an exchange of a token for another.
CobaltX swaps are performed by its smart contracts deployed on Soon. They are executed against the depositors' liquidity. Hence, they don't require any intermediary, unlike trades on custodian exchanges.
The exchange rate is calculated following predefined mathematical formulas available on and accounting for the available tokens in the pools.
CobaltX's liquidity comes from its own liquidity pools. CobaltX routing engine can through several pools perform a swap to find the best execution and limit slippage.
When you swap in a CobaltX liquidity pool, the fees charged range from 1% to 0.01% depending on the pool you are swapping through. Those fees are distributed following this repartition: AMM pools
88% is redeposited into the liquidity pool and acts as a reward for liquidity providers.
12% is used to buy back the COBALTX token
CLMM pool
84% is redeposited into the liquidity pool and acts as a reward for liquidity providers.
12% is used to buy back the COBALTX token
4% goes to the protocol treasury
Network fee: A nominal amount of ETH is also required to process Soon network fees on each trade. Most transactions cost between 0.0001 — 0.001 ETH.
Price impact is the difference between the current market price and the expected price for a trade. Price impact is primarily determined by the size of your trade relative to the amount of liquidity in the pool. As the number of tokens you buy from the pool increases, the price of the token increases as well. This unfavorable change in price is called price impact.
If you are swapping in a pool with very low liquidity, you may receive a very poor price for your swap. If you see a high price impact when swapping, try trading a smaller amount or swapping in a pool with higher liquidity.
Slippage is the difference between the expected price of a swap and its execution price.
CobaltX allows users to set their slippage tolerance determining the maximum difference between the expected and execution price. If the slippage exceeds the user's choice, the swap won't be executed.
Setting a high slippage tolerance may result in an unfavorable swap.
Insufficient ETH: ETH is required to pay network fees (gas), it's recommended to keep at least 0.05 ETH in your wallet to ensure smooth transactions.
Slippage Tolerance: Transactions will fail if the price of the underlying pool moves past your Slippage Tolerance. Try increasing your slippage tolerance on the Swap page.
Approving Transactions: If you see the “Making Transaction” notification in the lower left-hand corner of your screen, you will need to approve the transaction in your SPL wallet.
Yes! You'll need to use the built-in browser or your .
Go to , the interface will automatically detect the wrapped Eth and offer to swap them for Eth.
No worries, you can join the CobaltX or for 24/7 support! CobaltX's community managers will be more than happy to help you.