Detailed instructions on how to use Paraswap (2022)

As I write this article, the TVL of the entire DeFi ecosystem recorded by Defilama has reached $130B, more than 6 times the figure at the beginning of the year. Thereby, you can feel the charm of DeFi and partly project its influence in this 21st century.

However, concepts like gas fees, slippage, or too many DEXs with different functions and approaches will make it difficult for new users at first. Therefore, DEX Aggregator was born with the goal of aggregating liquidity of DEXs, plus an extremely user-friendly design.

Today I will introduce to you one such DApp – Paraswap.

Overview of Paraswap

Paraswap is the bridge between the end user interface and integration with other DeFi services. It aggregates liquidity from DEXs together, providing end-users with the best experience.

You can follow the diagram below to understand how Paraswap works.

After you send a swap order to Paraswap, the system will check the price on DEXs with oracle (currently Paraswap is cooperating with LINK), and Paraswap also checks the price on other platforms like Aave, Synthetix and compare with Paraswap Pool to choose the best transaction for the user.

Looking for more information: What is Paraswap??

Paraswap User Manual

You can watch the Paraswap user guide visually through the video below:

Step 1: Access Paraswap

Visit the Paraswap website at: https://paraswap.io/

You can see that paraswap is very focused on the user interface, so it is very intuitive and easy to understand.

Step 2: Connect the wallet to ParaSwap

You click the button “Connect Wallet” to connect. At this step you can connect to any wallet you want, I choose Techtipsnreview Wallet so I choose “Wallet connect“.

Techtipsnreview Wallet is a non-custodial cryptocurrency wallet used to store, send and receive multi-chain, multi-source digital assets. With Techtipsnreview Wallet, you can transfer money quickly and simply; manage multiple assets easily;trade DEX directly on mobile wallet; gas fee optimization;… and many other utilities. See instructions on how to install and use Techtipsnreview Wallet now here.

Next, you turn on App Techtipsnreview select button “connect” to turn on the camera to scan the QR code on the laptop screen, then you can confirm the connection on App Techtipsnreview.

Step 3: Perform swap

At this step, it is quite similar to other DEX platforms, I will explain the information available on the interface of Paraswap for you to understand.

• Estimated Cost: Total gas cost of your swap transaction.
• Price Impact: Average slippage from different sources.
• Minimum Received: Crypto prices are always volatile. This number is the lowest number of tokens you get in a worst-case scenario.

The Paraswap user interface will also indicate on which platform the transaction you are about to swap will be performed, and how much % it takes.

As the example below, I want to swap from ETH to DAI, after Paraswap calculates and gives me the best solution is a combination of 4 DEXes.

• ParaSwapPool (50%).
• Kyber (22%).
• SushiSwap (18%).
• UniswapV2 (10%).

Step 4: Other uses

As I mentioned above, if you want to both swap and send to another wallet address in the same transaction, please click on the button “Swap & Transfer” and then enter the address of the ETH wallet that you want to receive the token.

Conclude

So I just introduced you to Paraswap product, I find this to be a beautifully designed, well-organized and user-friendly product. Therefore, if you have a lot of needs for Ethereum DeFi transactions, you should note this product to optimize capital efficiency and save gas fees in some cases.