FAQ
Swap
What’s new in Exchange V3?
Concentrated liquidity - liquidity will be concentrated on the most actively traded price range, which means:
Lower trading slippage for traders
Potentially more LP fee rewards for liquidity providers
A flexible trading fee structure - Liquidity providers can choose between multiple trading fee tiers when creating liquidity pairs or providing liquidity
Customisable price range - Liquidity providers can also choose what price ranges they want to provide liquidity to
Non-fungible liquidity positions - Each liquidity position will have its own unique ID corresponding to its configurations (such as price range). Therefore, you will be able to create and maintain multiple positions with the same trading pair but with different configurations and liquidity amount
Backwards compatible - v3 Exchange will also utilise the legacy v2 and stable swap liquidity pairs to always provide the best trading route
Built-in limit order - Pro users can utilise the new customisable price range in liquidity provisioning to effectively create a limit order which will convert all the tokens to the desired one when the price hits the target
Can I add my own tokens to Exchange V3?
Everyone can create liquidity pools by depositing liquidity on V3.However, the following tokens are currently NOT supported:
Fee-on-transfer tokens
Rebase tokens
For these token, please do NOT add liquidity on Exchange V3. Your assets may stuck in the liquidity position.
How come my transaction won't go through?
Does the new Swap interface use v2 or stable swap liquidity?
Yes. The new Swap v3 uses liquidity from SMBSwap v3, v2 and stable swap to get the best trading route.
What is split routing?
How to customise or disable certain liquidity sources?
Liquidity
What are fee tiers and how to pick the correct one?
In Exchange v3, when you are providing liquidity, you can choose between several different trading fees (0.01%, 0.05%, 0.25%, and 0.1%) for the same token pair. For example, for SELF-BNB, there might be a 0.25% pair, which means a 0.25% trading fee is in place for every trade. However, some liquidity providers might choose to provide liquidity to a SELF-BNB trading pair with a 0.05% fee rate, offers a better quote and attract more trading volume.There is no “correct” answer for which trading fee configuration to choose. It depends on the tokens within the trading pair. Usually, volatile tokens should have a higher trading fee to better compensate for the impermanent loss brought by the volatility. On the other hand, tokens like stable coins have smaller price movements and lower impermanent losses, therefore their trading fee should be lower.When selecting a token pair, the “Add Liquidity” interface will automatically choose the most popular fee tier for you.
Why two of my deposit tokens are not equal in USD value?
In Exchange V3, underlying assets in a liquidity position will not always have an equal value in USD. It will depend on the price range settings of a position and the current price of the pair.In fact. If your position goes out of range, all tokens will be converted to one single asset. Plus, you can provide liquidity to a price range that does not cover the current price and deposit one single asset only. Continue reading to learn more ⬇️
What happens if my liquidity position goes out of range?
You will not earn any trading fee rewards if the current price goes out of the price range defined in your position.On top of that, all tokens will be converted to one single asset depending on the direction of the price condition.For example, if a position of SELF/BUSD is configured with a price range of 3 BUSD per SELF to 5 BUSD per SELF. And all assets in the position will be converted to BUSD if the SELF price is higher or equal to 5 BUSD per SELF, and vice versa. Please not that if the price moves back in the range, you will start receiving trading fee rewards again. No additional actions are required.
Is it better to always provide liquidity with a smaller range?
Providing liquidity to a smaller price range will help concentrate your liquidity to a spesific price range, boosting your relative shares again the total liquidity within the price range, potentially earning more trading fee rewards.However, please bear in mind that only active liquidity positions will earn trading fee rewards from trades. This means you will only earn rewards when the current trading price is within the price range defined in the liquidity position.
Are there any ways to automatically adjust my position so it is always in range and earning fee rewards?
Automatic position managing feature is coming soon to SMBSwap v3 with one-click liquidity depositing (Zap!). Stay tuned for more detail.
What will be the trading fee breakdown for v3 Exchange?
Text
0.01%
0.05%
0.25%
1%
Liquidity Provider
67%
66%
68%
68%
SELF Burn
10%
10%
23%
23%
Treasury
23%
24%
9%
9%
Are LP fee rewards automatically compounded like Exchange v2?
No.In Exchange v3 you will need to claim trading fee rewards manually. You may do that on the position detail page. You may find all your v3 liquidity positions on the liquidity page.
What affects LP APR?
In Exchange v3, LP fee reward APR could vary between liquidity positions. It is based on the following factors:
Trading volume - more volume generates more fee rewards
Liquidity pair fee tier - higher fee tier generates more fee rewards from individual trades
The number of tokens deposited - more token in the position translates to a larger relative share against the total active liquidity, which gets more trading fee rewards from trades
The selected price range - smaller price range allows a higher concentration for the same amount of token deposited, which translates to a larger relative share against the total active liquidity, and gets more trading fee rewards from trades
The amount of liquidity currently active - if there are more users who deposit and concentrate their liquidity with the same range as you, you will earn less trading fee due to a smaller relative share against the total
Whether the liquidity position is active - only active liquidity positions will earn trading fee rewards
Can I provide v2 liquidity?
Providing v2 liquidity is no longer advisable. We recommend using v3 liquidity to take advantage of the new features to improve efficiency.If you want to proceed with adding v2 liquidity:
If the token pair does not have a v3 pool, or it has more liquidity in v2 than the largest pool in v3. A “Add V2 Liquidity” will appear. Simply click to switch to adding v2 liquidity
Alternatively, use
/v2
in the URL to always use v2 liquidity provisioning
How to manage stable LP, and legacy v2 LP?
Last updated