Welcome to this post, where we are going to see how Terrswap, the #1 decentralized exchange on the Terra network, works.
If you want to exchange any cryptocurrency on the terra network, terrswap is the main platform for it, and the most used by many. Despite having a very simple interface, and only focusing on swapping and providing liquidity, it is the most used decentralized platform.
Unlike other decentralized exchanges that have decided to add more features to their platforms, such as pancakeswap, in terraswap we only find the basics and what you need to be able to exchange cryptocurrencies for others in the easiest way possible.
Step by step
To use terraswap, the first thing to do is to connect our terra station wallet. To do this, at the top right, click on connect and click on allow in our wallet.
In the swap part, in from we indicate the cryptocurrency we want to use, and in to the cryptocurrency we want to receive. You can click on it, to search in the list among the thousands of cryptocurrencies available in terraswap.
Once you have selected the two cryptocurrencies, the one you want to use and the one you want to get, the next step is to indicate the amount. Below, you will be able to see information such as rate, which is the price of the cryptocurrency you want to get compared to the one you want to use. The minimum you are going to receive when you make the swap, and the commission you are going to pay for making the swap.
In fee, in the middle, you can indicate in which token you want to pay the swap fee. By default it comes with UST, but you can select another token like Luna, or other stablecoins of other currencies for it.
With all the information verified, click on swap, confirm in your wallet and that’s it. This way, you will have already swapped tokens in terraswap.
In provide, you can provide liquidity of two tokens in exchange for receiving a % of the commissions paid, every time someone swaps that pair. Some of the most common LP tokens are LUNA-UST, LUNA-BLUNA, ANC-UST or MIR-UST among many others that you can provide.
Remember that you must contribute the same amount in 50%-50% of each token, which is equivalent in $ value. For example, 100$ of Luna and 100 UST to create the LUNA-UST LP.
At any time, you can undo the LP Token in withdraw, and have the two tokens back in your wallet. To do this, select your LP Token in LP, you can use the search engine to search and select it. Click on max if you want to withdraw the whole amount, and below you will see the amount received in the two LP tokens. Click withdraw, confirm in your wallet and you are done. This way, you will have your tokens back.
I hope this has helped you to know in more detail how to use terraswap. Remember that if you don’t have an account with binance, just below you can create one.