TerraSwap Decentralized Exchange Review

TerraSwap is a decentralized protocol that allows swapping tokens within the Terra blockchain. We can swap CW20 tokens from our wallet directly. There’s a Terra Station web extension that is available to work from a PC. The service was launched in December 2021. The developers are Delight Labs.

TerraSwap overview

• The system provides us with the possibility to swap any Terra-based tokens.
• The service was created in May 2021.
• There’s a Delight Labs company behind the service.
• Its on-site contact form doesn’t work.

How does TerraSwap work?

Let’s talk about how the Terraswap platform functions and with what features it can provide us. For your comfort, we have grouped the information in the following list.

• The system was designed based on the automated market-maker (AMM) principles.
• There’s a smart contract based on the Terra blockchain.
• We can trade on the platform or provide liquidity for the service to function.
• We are allowed to exchange our token for another token through Terraswap using the price determined by the liquidity pool ratio.
• People can add liquidity to two-asset pools that deliver liquidity to proper pairs.
• Liquidity providers are rewarded by newly minted LP tokens.
• So, the rewards are shared within pool liquidity providers properly.
• Liquidity providers can burn their LP tokens to withdraw their share from the pool.
• There’s a Terraswap Web Application designed.
• It is an official web front-end interface swapping Terra native tokens and CW20 tokens.
• We can download it completely for free.
• Our wallet has to interact with Terraswap Web Application.
• We have to proceed with short registration to use the extension.
• The platform creates automated markets for pairs of tokens.
• So, we can exchange assets directly on a chain that allows us not to pay extra gas.
• Pools manage balances of both assets, to which users can provide liquidity in exchange for reward-bearing LP tokens.
• The commission within Terraswap is fixed: 0.3%.
• Liquidity Pools commission is paid for each trade that goes back into the corresponding liquidity pool as fee for liquidity providers.
• Liquidity Pools commission that is accumulated to the pool can be withdrawn by burning LP tokens, which are generated from liquidity provision.
• We can release our own token within the platform functionality.
• The code of the token will be based on the CW20 rules.
• We can create pools based on our token and another one to create a liquidity pair.
• We have all responsibility to work with any assets on the platform.
• Terraswap uses algorithmic pricing by tracking the ratio of the paired asset within the liquidity pool.

What can you buy on TerraSwap?

We can buy any CW20 tokens within the functionality of the Terraswap decentralized exchange.

Is TerraSwap safe?

The platform looks average. So, the risks are equal. As usual, the more risks lie in the filt of potential exploiting liquidity pools.

TerraSwap fees, compatible wallets, and transactions  

• The developers charged 0.3% fees for every trade performed on the platform.
• We can work with Tera Station and XDEFI Wallet.
• It quickly executes transactions.

What are the ways to trade on TerraSwap?

We are free to swap any number of our CW20 tokens paying average for the market fees. 

Customer support

The developers provide support within the next services: email, Discord, Twitter. We can check the code on GitHub.

Should you buy a TerraSwap token?