Everything you need to know about Swapping Tokens on QuipuSwap.
You may be familiar with swapping ERC20 tokens on Ethereum DEX’s like Uniswap or Sushiswap, now it’s time to introduce you to another blockchain called Tezos and provide instructions on how to swap Tezos FA1.2 and FA2 tokens.
Before we start make sure to check out the Staking Rewards Asset Profile Page for Tezos to help get a better understanding of what Tezos is and how it compares to something like Ethereum.
Teaser: This article will be worth the read as we suspect QuipuSwap will eventually do a Native Governance Token Airdrop to those brave enough to become early adopters of their platform. This is just a suspicion but would look similar to what Uniswap did with UNI and what 1inch.excahnge did with 1INCH.
The biggest benefit of using QuipuSwap on Tezos is the cheap gas fees associated with all transaction types. Reminder that the Tezos ecosystem is relatively new and the fact that you are reading this article makes you a very rare unique user.
Get ready to enjoy a whole new world of token assets to ape… (swap) into and provide liquidity for.
What is QuipuSwap?
QuipuSwap is one of the first swap DEX’s built on Tezos for the purpose of swapping XTZ, FA1.2 and FA2 assets amongst eachother. QuipuSwap is an open-source AMM protocol that provides an interface for the seamless exchange of Tezos tokens (DEX).
To interact with QuipuSwap you must have a Tezos wallet like Temple Wallet or Kukai Wallet. The Temple wallet for example is comparable to Metamask, but for Tezos. The Kukai wallet is great for use with a mobile phone and even allows for direct auth linking to your google, reddit, and twitter accounts.
For an easy comparison you can look at QuipuSwap like a version of Uniswap but for the Tezos blockchain.
Some functions users can perform on QuipuSwap:
Swap – trade assets for eachother including non whitelisted assets
Send – swap assets and send them to a different receiving address
Add/ Remove Liquidity – become a liquidity provider for various liquidity pools, create your own if it doesn’t exist.
Govern – Vote for a baker and claim additional rewards
It is important to note that QuipuSwap is still in the early days and some features may not always work smoothly.
Prerequisites
For starters, you need to own some Tezos (XTZ). You can buy these from most popular centralized exchanges.
Next you should make sure to download and become familiar with the Temple Wallet Browser Extension. (We are using Temple Wallet for this demo). Please note you can also use Kukai Wallet to swap on QuipuSwap.
Lastly you’ll want to make sure you learn about Tezos from the Staking Rewards Tezos Profile.
How to Swap on QuipuSwap
Step 1
First, go to the website: quipuswap.com and click on the button that says “Connect Temple” in the top right. You will be directed to connect your wallet, in our example we use Temple Wallet.
Click “Connect“
Step 2
Now that you have connected your wallet you can begin interacting with QuipuSwap.
Click into the Swap header and select your “Input” as XTZ – this is the original asset you want to swap.
Next select the “Output” token from the dropdown list. This is where it gets interesting, since the ecosystem is so new there are only a handful of “whitelisted” assets to choose from like hDAO. If you want to swap for a freshly released token like “WRAP” or “bDAO” you will need the Token Address and Token ID.
Here are some examples:
WRAP – KT1LRboPna9yQY9BrjtQYDS1DVxhKESK4VVd – Token ID: 0
bDAO – KT1GUNKmkrgtMQjJp3XxcmCj6HZBhkUmMbge – Token ID: 0
FLAME – KT1Wa8yqRBpFCusJWgcQyjhRz7hUQAmFxW7j – Token ID: 0
tDAO – KT1Cjx8hYwzaCAke6rLWoZBLp8w89VeAduAR – Token ID: 0
Step 3
Now that you have entered your token information you can select your slippage tolerance and click “Swap“.
This will prompt a confirmation message for you to review in your Temple Wallet. Review details and click “Confirm“.
*Notice the extremely cheap gas fees!
Wait approximately 2 minutes for the transaction to confirm on the blockchain, once confirmed you have completed the swap. Congratulations!
How to Add Liquidity on QuipuSwap
Step 1
First, go to the website: quipuswap.com and click on the button that says “Connect Temple” in the top right. You will be directed to connect your wallet, in our example we use Temple Wallet.
Click “Connect“
Step 2
Now that you have connected your wallet you can begin interacting with QuipuSwap.
Click into the “Invest” header and navigate to the “Add Liquidity” sub-header.
Choose that pair you want to add liquidity to, in our example we are adding liquidity to the XTZ / bDAO pair.
Please be aware that you will be adding the same value of each side of the pair. This is how liquidity pools work. QuipuSwap will automatically calculate the amount of the second side of the pair once you enter the amount in XTZ that you want to add.
Click “Add Liquidity“.
Step 3
Now that you clicked “Add Liquidity” your Temple wallet will prompt you to confirm the transaction.
Review details and click “Confirm“.
*Notice the extremely cheap gas fees!
Wait approximately 2 minutes for the transaction to confirm on the blockchain, once confirmed you have completed adding liquidity to the pair. Congratulations!
Conclusion
This was a very easy process to understand if you are familiar with Uniswap and Metamask. The biggest advantage that QuipuSwap and Tezos provides are the extremely cheap gas and storage fees. There is also a high likelihood that QuipuSwap will someday airdrop early adopters of their platform some sort of governance token. I cannot recommend trying this process enough, the rewards will be plenty. There is a great whitelisted set of tokens to try swapping and adding liquidity to including hDAO, STKR and more. You can also do some deeper research in the Tezos ecosystem to find what other new tokens are starting to emerge like bDAO and WRAP. We would love to hear your feedback on if this article was useful! Happy swapping!