How Crypto Swaps Work: Routes, Slippage, and Approvals

From input asset to route

A swap interface identifies the input asset, output asset, network, amount, and available liquidity. A routing system may compare one or more pools or providers. The displayed route can change as liquidity, price, network state, and provider availability change.

Price impact and slippage are different

Price impact describes how your own trade changes the available pool price. Slippage describes the difference between the expected and executed result. A very low slippage limit can cause failure; a very high limit can allow a materially worse result.

• Review minimum received
• Check price impact for the trade size
• Do not raise slippage merely to force an unknown token through

Why token approvals appear

On many smart-contract networks, a token approval gives a contract permission to spend a defined token amount. Confirm the spender, token, amount, network, and whether the approval is limited or unlimited. An approval is separate from the swap transaction itself.

Final checks before signing

Verify token contracts, network, route provider, exchange rate, minimum received, price impact, network fee, service fee, and destination. Beware of copied interfaces and unsolicited support. A failed onchain swap may still consume network fees.