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How to swap tokens on Ubeswap

How to use Ubeswap

Ubeswap is a decentralized exchange and automated market maker (AMM) protocol for Celo assets. The protocol allows Celo users and applications to trade between any two ERC20 tokens. With Ubeswap, Celo adoption increases because it makes it easier to trade on-chain.

With a few steps, you’ll be able to provide liquidity to Celo and trade between tokens!

Why Use Ubeswap? #

With Ubeswap, users can exchange tokens on Celo without having to trust anyone with their money. This uses liquidity pools, so you can also lend crypto to liquidity pools and earn fees. On top of earning interest, you will also earn the native token, UBE.

step 1

Therefore, you can either use Ubeswap to trade between tokens, or you can provide liquidity and earn interest and UBE when others trade between the token pair you provide liquidity for.

Celo is all about mobile, so Ubeswap also acts as a mobile-first decentralized exchange (DEX), bringing DeFi to everyone.

How to Connect a Celo Extension Wallet #

To start trading, you will have to connect a wallet. First, open https://ubeswap.org/.

step 2

At the top right corner, click on Launch App.

step 3

Connect to Celo Extension Wallet

step 4

After launching, a new tab appear. Click the Connect to a Wallet in the top right corner.

You have the option of connecting MetaMask, a Celo Extension Wallet, or Ledger.

step 5

Choose the Celo Extension Wallet and add the extension to your browser if you haven’t already.

step 6

After the extension is added, you will have the option of creating a new wallet or importing an existing one. Choose accordingly, and follow the prompts.

To set up, click on Create a Wallet and agree to the terms.

step 7

Go ahead and input your preferred password, then click on Create.

Retrieve your secret backup phrase and click Next. It’s extremely important that you never give your recovery phrases to anyone. 

step 8

Once you are done with the setup procedure, you will have successfully added a Celo Extension Wallet.

step 9

Now that you have installed the wallet:

  1. Go back to https://app.ubeswap.org/#/swap.
  2. Click on Connect to Wallet.
  3. Choose the Celo Extension Wallet.

A menu will be displayed on the right side where you can click on Next, then Connect.

step 10

Trading Celo for cUSD #

Once you’ve connected, choose the tokens you would like to swap. There are various supported tokens, and you can check your options by clicking on the downward arrow after each token.

Any user can also create a new pair and add liquidity by clicking on Pool at the top of the exchange site.

step 11

Enter the number of tokens you want to swap, then click swap. To give you an idea, 1 celo is worth 4.22c USD (rates can vary). You’ll also get the transaction details, including the liquidity provider fee.

step 12

To swap your tokens, Ubeswap will need your permission. That way, you won’t send your assets to random addresses. Click on Approve Celo to continue.

step 13

On decentralized exchanges like this, trading fees go to liquidity providers. Fees are earned when people trade tokens for the pairs they provide liquidity for.

To continue with your trade, confirm the transaction, and the swap will be processed.

In the case of CELO/cUSD, when you trade tokens for this pair, liquidity providers earn fees. Fees are proportional to the share of the pool they contribute to, and are redeemable at any time.

Like I said, Ubeswap isn’t just for converting tokens; you can also become a liquidity provider and earn trading fees. On top of this, Ubeswap also enables you to provide liquidity directly to Moola, another dApp on Celo.

Actualizado el enero 21, 2022
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*Publicidad pagada. No es asesoramiento financiero. RugDoc no se hace responsable de los proyectos aquí expuestos. DYOR y mantente seguro.