Swap FAQ
Swap Common Questions
To help you better understand the basics of swapping on SEGA, here are some common questions and answers:
What Is a Swap?
A swap is the exchange of one token for another. SEGA executes swaps via smart contracts on SonicSVM, using liquidity from depositors’ pools. Unlike custodial exchanges, no intermediaries are involved. The exchange rate follows predefined mathematical formulas (viewable on GitHub) and adjusts based on token availability in the pools.
What Is Liquidity?
SEGA’s liquidity is sourced from its own pools. The SEGA routing engine optimizes swaps by navigating multiple pools to secure the best execution price and minimize slippage.
What Is Token Lising?
SEGA operates as a decentralized protocol with permissionless token listing. Any project or team can create a pool and list their token. Always verify the contract address before swapping to ensure token legitimacy.
What Is Price Impact?
Price impact is the difference between a token’s current market price and the price you receive after a swap. It’s driven by your trade size relative to the pool’s liquidity. Larger trades in low-liquidity pools increase token prices, resulting in unfavorable price impact. For better rates, reduce your trade size or choose a pool with higher liquidity.
What Is Slippage Tolerance?
Slippage is the variance between a swap’s expected price and its final execution price. SEGA lets you set a slippage tolerance, defining the maximum acceptable price difference. If slippage exceeds this limit, the swap fails. A higher tolerance may lead to less favorable pricing, so adjust carefully.
Why Did My Transaction Fail?
Common reasons include:
Insufficient SOL: Network fees (gas) require SOL—keep at least 0.05 SOL in your wallet.
Slippage Tolerance: If pool prices shift beyond your set tolerance, the transaction fails. Increase it on the swap interface
Pending Approvals: A “Making Transaction” notice means your SPL wallet needs approval—confirm it promptly.
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