> 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/what-is-baseswap-and-how-do-i-use-it-on-base.md). # What Is BaseSwap and How Do I Use It on Base? BaseSwap is a decentralized exchange on Base where you can swap tokens or supply them to liquidity pools. If your trade is pending or failed, check its status before trying again. ### What Is BaseSwap? It is a decentralized exchange (DEX), meaning you trade from your wallet without depositing tokens with an exchange. Base is the network that records the trade. You need tokens on Base and usually some ETH there to pay the network fee. Trades draw from liquidity pools: shared reserves of tokens supplied by other users. A pool sets its exchange rate from the amounts it holds. As people buy one token, that token becomes scarcer in the pool and its price rises. For example, imagine a pool holding 100 ETH and 250,000 USDC. Its starting rate is 2,500 USDC per ETH. A purchase with 1,000 USDC would return about 0.3984 ETH before the trading fee, rather than 0.4 ETH, because the purchase changes the pool’s balance. ### How Do I Swap Tokens on BaseSwap? To swap, connect a wallet on Base, choose the token you have and the token you want, then review and sign the trade. MetaMask is one wallet example. If your tokens are on another network, transfer or bridge them to Base first; bridging means moving tokens between networks. Once the wallet holds the tokens on Base, decide how much to exchange. Use [BaseSwap](https://baseswap.io) to make that swap from your wallet. For a BaseSwap trade, compare the expected output with the smallest amount you would accept before signing. Three things can reduce what you receive or increase what you spend: * **Pool trading fee:** A charge for the swap that depends on the pool used. * **Network fee:** ETH paid to process the transaction on Base, even if you are swapping USDC. The cost changes with network activity, as Base’s fee documentation explains. * **Price impact:** The change in the pool’s rate caused by your trade. It grows when your trade is large compared with the pool’s reserves. Slippage is the gap between the quoted output and the amount available when the trade runs. For example, a quote of 0.04 ETH with 0.5% slippage allows a minimum of 0.0398 ETH. If the available output drops below that minimum, the swap fails. Check the token’s contract address against its official source before signing. Different tokens can share a name, and a larger slippage allowance can let a poor trade go through. You never need to enter your wallet’s recovery phrase to swap. ### How Does Providing Liquidity Work? To provide liquidity, deposit tokens into a pool so other people can trade against them. In V2 liquidity pools, you generally add equal values of two tokens. At an illustrative price of 2,500 USDC per ETH, that could mean 1 ETH and 2,500 USDC. BaseSwap liquidity pools give providers a share of the pool and its trading fees. When you withdraw, you receive your share of the tokens held then. That mix can differ from what you deposited because trades keep changing the pool’s balance. If ETH rises sharply against USDC, your share may end up with less ETH and more USDC. It can then be worth less than simply holding the original tokens; this difference is called impermanent loss. Compare that possibility with the fees a pool earns before depositing. ### Why Is My Swap Pending or Failed? A pending swap has been sent but has no final result yet; a failed swap was processed without exchanging your tokens. Find its transaction hash, the long ID in your wallet activity, and check the status on Basescan. If it is still pending, use your wallet’s speed-up or cancel option before submitting another trade. A common mistake is treating a successful token approval as a completed swap. Approval only gives the exchange’s code permission to use that token. Once approval is confirmed, return to the trade and sign the swap transaction itself. A failed BaseSwap swap can still spend ETH on the network fee. Check that you have ETH on Base, then refresh the quote and review your amount and slippage. A smaller trade may help when the pool has little liquidity. For a swap, the key checks are the network, token address, expected output and transaction status. For liquidity, also consider how the value of your two tokens might change after you deposit them. --- # Agent Instructions This documentation is published with GitBook. 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