Diffusion allows traders to adjust the slippage tolerances and transaction deadlines within its dashboard. Multiple bridges are present on this decentralized exchange, including Nomad, Celer, Connext ,Gravity Bridge, and Multichain, for making inter-blockchain transfers. We will go through the potential advantages, and the security risks present within Diffusion to know if it is safe to rely.
Diffusion is the primary DEX for Evmos and uses DIFF as its governance token. The main features of Diffusion are:
- Multiple tokens for swapping
- IT provides the ability to create a pair and add liquidity to current ones
- The ability to earn fees and rewards by staking LP tokens
- Various bridges for connectivity
- Open source code that is public on the GitHub forum
- Over 18000 members are present on the Discord community
What countries does Diffusion support buying and selling in?
As the exchange is decentralized, traders from all over the globe can participate in buying/selling cryptocurrencies. The only aspect to note is if you can open a cryptocurrency wallet in your designated location.
How does Diffusion work?
Diffusion allows traders to swap different tokens for a little fee. If the desired token is not listed, investors can import it by adding the contract address. Traders can invest in the liquidity pools and earn rewards and interest. As per the developers ‘ statement, farming is also at hand, where swing investments lead to higher benefits.
What can you buy on Diffusion?
As mentioned before, traders can import liquidity pools and tokens they wish to invest or trade.
Some of the significant tokens available at Diffusion are:
Is Diffusion safe?
The decentralized exchange does not come under regulation from governments and third-party monitoring institutions. It can be subjected to phishing attacks or hackers, causing a loss of funds.
Diffusion fees, compatible wallets, and transactions
Each trade incurs a 0.3% fee that is charged to the sender. This is then distributed across all the liquidity providers. For swapping tokens, the costs can vary according to the instrument being swapped. It generally stands at the 0.003 value of the base instrument.
The platform currently supports Metamask and Walletconnect as the major wallets. Traders can open the platform on any browser and OS.
What are the ways to trade on Diffusion?
Traders can conclude their transactions on Diffusion in the following steps:
- Connect your respective wallet with the exchange
- Transfer your funds
- Select the appropriate tokens where you’d like to trade or add liquidity
- Withdraw your funds to your wallets after concluding the transaction
There is no live chat or email support available on the website. The document section is left empty in most parts. Traders can access the Discord or Telegram channels to converse with their fellow traders.
Should you trade with Diffusion?
Diffusion has the following pros and cons.
|High ROI in yield farms||The user guide lacks proper information|
|The source code is open and present on Github||No vendor transparency|
|Only two wallets are available for connectivity|
There are no reviews available for DEX on review forums which leads us to question the platform’s credibility. They rarely comment on their Telegram channel, showing a lack of interest in communicating with the general community.