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Z Protocol Swap
Experience the power of Z Protocol Swap by effortlessly swapping tokens of your choice on our platform. Our innovative swap feature enables traders to exchange tokens in your wallet with a wide selection of other tokens. When you initiate a swap request from token X to token Y, our advanced algorithm considers the relative value of these tokens within Z Protocol at that moment. As a trader, you will receive the remaining value of token Y after deducting the swap fees. It's important to note that token prices, represented by the exchange ratio, may fluctuate before and after the swap due to the total volume of swap requests made by our users. We refer to this value loss as the price impact.
To provide you with a superior trading experience, Z Protocol offers concentrated liquidity. When the liquidity levels within our pool are comparable, we aim to minimize the price impact compared to other DEXs. We provide transparency by showcasing the expected price impact based on the dollar value and the number of tokens you possess. We advise users to exercise caution when anticipating a strong price impact during their exchanges. Another crucial aspect to consider is slippage, which refers to the disparity between the expected price of a swap request, accounting for the price impact, and the actual transaction price. To manage slippage, we offer slippage tolerance, allowing you to set your preferred level of tolerance when submitting a transaction. For instance, if you set a 0.5% slippage tolerance, transactions up to 0.5% or lower than the anticipated volume of token Y will be permitted. In cases where the slippage exceeds your set tolerance, the swap will be automatically canceled.
It's worth noting that slippage may occur when there are time delays between the initial swap request and the actual transaction. During this time, price fluctuations within the pool can influence the final transaction price. Although slippage is a variable that users cannot predict in advance, we empower you with the ability to set your slippage tolerance, ensuring a more favorable trading experience.
Experience the efficient and secure swapping capabilities of zkHarvest while confidently managing price impact and slippage to suit your trading preferences.
At Z Protocol, we have implemented a fee structure to incentivize liquidity providers who contribute to the platform. When you make a swap on our platform, a nominal fee of 0.2% will be applied. However, unlike other platforms, we allocate the entire fee amount to our valued liquidity providers as a token of appreciation for their support in maintaining the liquidity pool.
By distributing the entire fee to liquidity providers, we aim to ensure their continuous participation and incentivize them to contribute to the growth and stability of Z Protocol. This fee distribution mechanism allows us to offer competitive rewards to liquidity providers while keeping the platform sustainable and thriving.
So, rest assured that when you make a swap on Z Protocol, 0.2% of the transaction value will go directly to the liquidity providers as their rightful reward for their valuable contributions.