> For the complete documentation index, see [llms.txt](https://docs.silverbackdefi.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.silverbackdefi.app/dex-guide/swapping-tokens.md).

# Swapping Tokens

Complete guide to swapping tokens on Silverback DEX.

***

## Base Network Swaps

### How It Works

When you swap on Base, Silverback automatically:

1. Checks our native liquidity pools
2. Queries OpenOcean aggregator for better rates
3. Routes your trade through the best path
4. Executes with optimal pricing

### Step-by-Step

1. Navigate to the **Swap** page
2. Select **Base** network from the dropdown
3. Choose your **input token** (what you're selling)
4. Choose your **output token** (what you're buying)
5. Enter the amount you want to swap
6. Review the quote:
   * Exchange rate
   * Price impact
   * Slippage tolerance
7. Click **"Swap"**
8. Approve the transaction in your wallet
9. Wait for confirmation (\~2 seconds)

### Adjusting Slippage

Click the gear icon ⚙️ to adjust slippage tolerance:

| Setting | Use Case                              |
| ------- | ------------------------------------- |
| 0.1%    | Very stable pairs (stablecoins)       |
| 0.5%    | Default — works for most trades       |
| 1-3%    | Volatile tokens or larger trades      |
| 5%+     | Very volatile or low liquidity tokens |

> **Warning:** Higher slippage means you may receive fewer tokens. Only increase when necessary.

***

## Keeta Network Swaps

Keeta offers two swap methods:

### Option 1: AMM Pool Swaps

Standard automated market maker swaps through Silverback's liquidity pools.

1. Navigate to **Swap** page
2. Select **Keeta** network
3. Select tokens and enter amount
4. The app finds the best pool automatically
5. Click **"Swap"**
6. Confirm in Keythings wallet

**Settlement: \~400ms**

### Option 2: FX Anchor Swaps

Access both official Keeta FX anchors and user-created Silverback pools through one interface.

1. Navigate to **Keeta → Anchor** page
2. Select your token pair
3. Enter swap amount
4. View available quotes:
   * 🔵 **Blue quotes** = Official FX Anchors
   * 🟠 **Orange quotes** = Silverback user pools
5. Best rate is auto-selected (you can choose manually)
6. Click **"Swap"**

**Two-Transaction Process:**

| Step | What Happens                                     |
| ---- | ------------------------------------------------ |
| TX1  | You sign to send tokens to the pool              |
| TX2  | Backend automatically sends output tokens to you |

Both transactions are required for the swap to complete.

***

## Understanding Price Impact

Price impact measures how much your trade affects the market price.

### Why It Matters

Large trades relative to pool liquidity will "move" the price against you. The bigger your trade, the worse your effective rate.

### Reading Price Impact

| Impact    | Status       | Recommendation             |
| --------- | ------------ | -------------------------- |
| < 0.1%    | 🟢 Excellent | Trade freely               |
| 0.1% - 1% | 🟢 Good      | Normal range               |
| 1% - 3%   | 🟡 Moderate  | Consider smaller size      |
| 3% - 5%   | 🟠 High      | Split into multiple trades |
| > 5%      | 🔴 Very High | Find deeper liquidity      |

### Reducing Price Impact

* **Smaller trades** — Split large orders into multiple smaller ones
* **Different pairs** — Route through intermediate tokens (ETH → USDC → TARGET)
* **Wait for liquidity** — Pools may have more liquidity at different times
* **Use Anchors (Keeta)** — Check anchor page for alternative pools

***

## Token Approvals

### What Are Approvals?

ERC-20 tokens require you to "approve" a smart contract before it can spend your tokens. This is a security feature.

### How It Works

1. First time trading a token → Approval transaction required
2. Approve once per token per contract
3. After approval, you can trade that token freely

### Approval Options

* **Exact amount** — Only approve the amount you're trading (most secure)
* **Unlimited** — Approve infinite spending (more convenient, less secure)

> **Security Tip:** For maximum security, approve only the amount you need. For convenience with tokens you trade often, unlimited approval saves gas on future trades.

***

## Swap Settings

Access settings via the gear icon ⚙️:

| Setting              | Description                  | Default    |
| -------------------- | ---------------------------- | ---------- |
| Slippage Tolerance   | Max price movement accepted  | 0.5%       |
| Transaction Deadline | Time before trade expires    | 20 minutes |
| Expert Mode          | Bypass confirmation warnings | Off        |

***

## Tips for Better Trades

1. **Check price impact** before confirming
2. **Compare rates** between AMM and Anchor swaps on Keeta
3. **Trade popular pairs** for better liquidity and rates
4. **Avoid trading during high volatility** unless necessary
5. **Split large trades** to minimize price impact