Swaps

Swaps are among the most common interactions on a DEX. The concept is straightforward: traders exchange the tokens they hold for a proportional amount of the target tokens. During this process, a small swap fee is applied, which serves as an incentive for liquidity providers.

Unlike order book markets, where trades follow a first-in-first-out principle and the timing of orders is crucial, swaps on Dexlyn (as with most DEX protocols) are executed against a passive liquidity pool. Here, liquidity providers earn transaction fees in proportion to the share of active liquidity they contribute.