DeFi Swap is a type of decentralized finance (DeFi) that enables users to exchange tokens on their own terms. DeFi Swaps are built using smart contracts, allowing for automated transactions without the need for third-party intermediaries such as brokers or exchanges. This means that trades occur directly between two parties and are settled quickly and securely without any middlemen taking a cut from each transaction.
The main benefit of DeFi Swap is its trustlessness – because all trades are executed through code rather than through centralized entities, users can be sure that no one has control over their funds aside from themselves. Additionally, by leveraging existing protocols like Uniswap and Balancer, it’s easy to set up an effective swap system with minimal technical knowledge required; this makes DeFi swaps accessible even to those who aren’t experienced crypto traders. Compared to more traditional methods like centralised exchanges where fees may be higher due to costlier infrastructure costs, DeFi swaps provide access at low costs while also ensuring security as they eliminate counterparty risk since there are no custodians holding user’s assets when trading occurs via these platforms.
Finally, many Defi swapped offer additional features such as liquidity pooling which allows token holders to add value back into the platform by providing liquidity in return for rewards paid out in native tokens or other cryptocurrencies – something not possible with regular trading platforms
