About Paraswap

ParaSwap.io aims to become the fastest DEX Aggregator. ParaSwap raised seed funding from the likes of Blockchain Capital, Alameda Research, Arrington XRP Capital, Coinfund and Stani Kulechov.

Paraswap is a trading platform and decentralized exchange (DEX) aggregator that caters to traders across country borders, with a focus on exchanging Ethereum transaction tokens and allowing decentralized exchanges to take place while offering other decentralized finance (DeFi) services within its exchange portal. Besides Ethereum, Paraswap also supports Polygon, Binance Smart Chain and Avalanche.

In essence, Paraswap acts as the intermediary between users and various DeFi services, collating liquidity from more than 20 decentralized exchanges to bring all these possibilities into a single portal for users’ convenience.

What Is Paraswap?

ParaSwap is a DeFi-based exchange portal that is user-friendly and designed with the user’s convenience in mind.

Each Paraswap transaction shows the user a helpful summary of their transaction, including the estimated cost, price impact and minimum received. Also shown are the routing details to help users understand the path their tokens have taken and minimize confusion.

One important thing to note is that Paraswap exchanges do not incur any additional fees to the user and users only need to pay for gas fees, as with any DeFi exchange.

Paraswap returns the optimal route and effective price to the end-user through a series of routing through its internal mechanisms. Once a user taps into the exchange, Paraswap finds the best rate using a pricing aggregator that fetches off-chain pricing and then performs the swap using a smart contract to deposit the fee into a fee wallet. This may sometimes involve breaking a single order into several exchanges if that is the most price-efficient way of conducting the swap.

This mechanism eliminates the need for users to compare prices and instead frees up their time to focus on optimizing their trading strategy or educating themselves on the cryptocurrency space, like using CoinMarketCap Alexandria.

The “Swap & Transfer” function allows users to easily send tokens to other users at any address, facilitating cross-party exchanges.

How Does Paraswap Work?

Using ParaSwap begins with an Ethereum wallet, which is all a user needs in order to make use of the exchange.

To set up an account, a user can use the Paraswap app on a browser or download the Paraswap app. They can then use a hot wallet, like MetaMask, or a cold wallet, like the Ledger Nano. Users need to then create an Ethereum account on Ledger Live. In Ledger Live, there is a Swap tab where a user needs to select Paraswap as the provider.

From here, the user can select the Ethereum account they want to use as well as the tokens they want to swap. The last step is verifying the swap information on their Ledger hardware wallet.

What Makes Paraswap Unique?

Paraswap is unique firstly in that it allows large transfers of Ethereum to take place, with the transfers most effective when they exceed 15 ETH. Paraswap also allows for transfers involving interactions with a number of DeFi protocols.

Another unique feature of Paraswap is that it allows users to aggregate their DeFi exchanges and do the swaps within one single transaction, optimizing gas fees.

While Ethereum is the main type of token exchanged on Paraswap, the exchange also allows for the payment of different types of currencies, saving a lot of steps for users.