> For the complete documentation index, see [llms.txt](https://aboutcryptotalks.gitbook.io/aboutcrypto/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aboutcryptotalks.gitbook.io/aboutcrypto/syncswap-how-to-swap-tokens-or-provide-liquidity.md). # SyncSwap: How to Swap Tokens or Provide Liquidity SyncSwap is a decentralized exchange where you can swap tokens or provide liquidity on supported Ethereum layer 2 networks. The key condition is that your wallet holds the right assets on the same network as the pool, plus enough to cover network fees. A swap changes your tokens; providing liquidity gives you a share of a pool used by other traders. ### SyncSwap Trades Through Pools on One Network Each trade draws tokens from a pool on the network you selected. An automated market maker, or AMM, is code that prices a trade from the amounts held in that pool. As traders exchange one token for another, those amounts change, and so does the price. Pools on different networks hold separate assets. For example, tokens in a wallet on Linea cannot be spent in a zkSync Era pool until they are moved across networks. A swap exchanges tokens on the current network; it does not move them to another one. syncswap.dev is a decentralized exchange for swapping tokens and adding them to classic or stable pools. The token pair and pool must exist on the network you intend to use. ### A Swap Starts With the Right Assets and a Quote To swap, you need the token you will sell in your wallet on the chosen network. You also need enough to cover its transaction fee. If your funds are still on Ethereum mainnet, moving them to a layer 2 is a separate action with its own cost and timing. Check the quoted amount you will receive, not only the starting exchange rate. Price impact is the change your trade makes to a pool’s price. Say a Classic pool holds 10 ETH and 20,000 units of a dollar stablecoin. Selling 1 ETH into it returns about 1,818 units before fees, roughly 9% below the pool’s starting rate. Slippage tolerance is the extra drop you will accept between seeing a quote and completing the trade. For example, a 0.5% tolerance on a quote of 100 tokens sets a minimum of 99.5. It does not remove price impact already reflected in the quote. The SyncSwap DEX exchanges tokens from pools and accepts deposits into them. Once you have checked the pair and network, [syncswap.dev](https://syncswap.dev) is where you can make that swap or supply the assets to a pool. Check the expected output and your minimum acceptable amount before signing. A pool trading fee reduces what you receive, while gas pays for the network transaction. ZKsync’s fee model says gas also reflects data that must be posted to Ethereum, so its cost can change. Some tokens require an approval first: under the ERC-20 token standard, that is permission for a contract to spend a stated amount of your tokens. ### Liquidity Provision Pays Fees but Changes Your Holdings SyncSwap on zkSync Era lets you deposit tokens into a pool in exchange for a share of its holdings and trading fees. A Classic pool is designed for pairs whose prices may move apart, such as ETH and a dollar stablecoin. A Stable pool is designed for assets intended to stay near the same price, such as two dollar stablecoins. A pool deposit usually calls for both tokens in the proportions the pool needs. If ETH is worth $2,000, a roughly equal-value Classic deposit might contain 0.1 ETH and 200 dollar-stablecoin units. Your pool share represents a fraction of both assets, rather than a promise to return those exact amounts. Fees can grow that share’s value, but changing prices alter its contents. If ETH doubles against a stablecoin, a half-and-half Classic position ends up about 5.7% below simply holding both assets, before fees. This shortfall is called impermanent loss. A Stable pool also carries the risk that an asset meant to hold its price loses that link. ### Four Checks Set the Final Choice Before acting, settle how the transaction works, what it may cost, what could stop it, and which outcome you want. #### How Does a Swap Work? You choose a token to sell and one to receive. The exchange draws the first token from your wallet and sends the second from one or more pools. If the route crosses several pools, each exchange affects the final amount. The transaction completes only if it can meet your minimum received amount. #### How Long Does It Take and What Does It Cost? A layer 2 swap often appears within seconds to minutes, though network conditions affect timing. Its cost includes the pool fee and a separate network fee; an approval can add another transaction. As an illustration, a 0.3% pool fee takes $0.30 from a $100 trade before price impact and gas. Check the actual quote for your pair. #### What Limits Can Stop a Trade or Deposit? Too little network-fee balance, an insufficient token approval, or a missing pool can stop the transaction. A trade can also fail if its output falls below your minimum. Thin liquidity may give a poor quote even when a trade is possible. Before approving a token, check its contract address, the token’s unique identifier on that network; names can be copied. #### Which SyncSwap Option Fits? Swap if you want to change one token into another now. Provide liquidity if you want to hold a pool share, earn a portion of trading fees, and accept that your token amounts will change. Classic pools suit pairs that may move apart; Stable pools suit assets expected to track each other. For an occasional exchange, swapping is the simpler choice. --- # Agent Instructions This documentation is published with GitBook. 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