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Swap Tokens with ZenSwap

Zenswap is a decentralized exchange (DEX) that enables users to swap ERC-20 tokens directly from their wallets, as well as provide liquidity to trading pairs in order to earn fees. Below are the essential steps for token swaps and liquidity management.

Swapping Tokens​

  1. Connect Wallet
    • Visit ZenSwap
    • Connect your Ethereum wallet (e.g, MetaMask)
  • Select Tokens
    • In the “Swap” tab, choose the token you want to trade (From) and the token you want to receive (To).
    • Ensure you have approved the smart contract to spend your token (a one-time approval per token).
  • Review Quote
    • Enter the amount you want to swap.
    • The app shows the estimated amount you’ll receive, price impact, and network fees.
  • Execute Swap
    • Click Swap, confirm the transaction in your wallet, and wait for it to be mined.
    • Once confirmed, the new tokens will appear in your wallet.

Providing Liquidity​

Zenswap uses liquidity pools—pairs of tokens locked in a smart contract that traders swap against. Liquidity providers (LPs) earn a share of the 0.3% fee from trades in proportion to their contribution.

Creating a Liquidity Pool (if none exists)​

  1. Go to the Pool tab and select Create new pool
  2. Choose two tokens (e.g., ETH and DAI). If no pool exists, you will be creating a new one.
  3. Deposit equal value of each token (not necessarily equal quantities).
  4. Confirm the supply transaction in your wallet.
  5. You’ll receive LP tokens representing your share of the pool.

Adding Liquidity (to an existing pool)​

  1. Go to the Pool tab and select Add on a pool from the list
  2. Select how much of one token you want to supply.
  3. The app automatically calculates the required amount of the other token.
  4. Approve and confirm the transaction.
  5. You’ll receive additional LP tokens reflecting your contribution.

Removing Liquidity​

  1. Go to the Pool tab and select Remove on a pool from the list
  2. Specify how much of your LP tokens to redeem.
  3. Confirm the transaction.
  4. The underlying tokens (plus any accrued fees) will be returned to your wallet, and your LP tokens burned.