As decentralized finance (DeFi) matures, users demand more efficient, secure, and policy-aware decentralized exchanges. Enter Fraxswap, the first automated market maker (AMM) developed specifically to support monetary policy execution for stablecoin protocols.
This guide will walk you through how to use Fraxswap effectively — whether you’re a trader, liquidity provider, or DeFi strategist.
What is Fraxswap?#
Fraxswap is a decentralized exchange developed by Frax Finance, designed to go beyond simple token swaps. It’s built on Uniswap V2 architecture but adds a critical innovation: the Time-Weighted Average Market Maker (TWAMM).
Fraxswap allows:
Efficient swaps between key tokens like FRAX, FXS, USDC.
TWAMM orders for long-term, low-slippage trades.
Execution of Frax Protocol’s monetary policy through automated liquidity strategies.
You can access Fraxswap via the official site: fraxswap.net
Why Use Fraxswap?#
✅ Optimized for Frax Ecosystem
✅ Supports TWAMM for gradual trading
✅ Permissionless & Gas-Efficient
✅ Integrated with FRAX, FXS, USDC pools
Fraxswap is the best way to interact with the Frax ecosystem's core assets while benefiting from unique features that aren't available on conventional AMMs.
Step-by-Step Guide: How to Use Fraxswap#
Step 1: Visit the Fraxswap Platform
Welcome to Fraxswap and click "Launch App."
Step 2: Connect Your Wallet
Use MetaMask or any Web3-compatible wallet. Approve the connection request to proceed.
Step 3: Choose the Token Pair
Select which tokens you want to swap — common options include:
FRAX ↔ USDC
FRAX ↔ FXS
FXS ↔ WETH
Step 4: Enter Swap Amount
Input the amount of the token you want to swap. Fraxswap will automatically show the expected return.
Step 5: Review Price & Slippage
Fraxswap displays the slippage tolerance and expected output. You can also adjust the slippage settings manually.
Step 6: Confirm and Execute
Click Swap, approve the transaction in your wallet, and wait for confirmation. Your new tokens will appear in your wallet after the trade is processed.
Fraxswap Additional Features#
TWAMM — Long-Term Trading
Fraxswap allows users to execute Time-Weighted Average Market Maker orders. This spreads large trades over time, minimizing slippage and price impact — ideal for DAOs and protocol-level operations.
Liquidity Provision
You can also provide liquidity to earn fees. Visit the "Liquidity" tab, select a pool, and deposit equal values of both tokens.
Security and Transparency
All smart contracts are publicly available on GitHub:
🔍 Fraxswap GitHub
Audits and ongoing updates ensure the platform's reliability. You retain full custody of your funds while using Fraxswap.
Frequently Asked Questions (FAQ)#
Q: What makes Fraxswap different from Uniswap?
A: Fraxswap integrates TWAMM, which allows for gradual execution of large trades — a feature not found in Uniswap v2 or v3.
Q: Is Fraxswap only for FRAX?
A: No. While it's optimized for the FRAX ecosystem, you can use it to trade any supported ERC-20 token.
Q: Can I use Fraxswap on mobile?
A: Yes, through wallet apps like MetaMask Mobile or Trust Wallet’s DApp browser.
Q: Is there a fee for swapping on Fraxswap?
A: Yes, like most AMMs, a small fee is charged and distributed to liquidity providers.
Q: Where can I learn more about AMMs?
A: Visit Binance Academy for a foundational overview of AMMs.
Final Thoughts#
Fraxswap represents the next generation of AMMs — combining algorithmic execution, stablecoin strategy, and efficient liquidity routing. It’s not just a DEX — it’s a component of an autonomous economic system.
For anyone actively involved in DeFi — especially users of the Frax ecosystem — Fraxswap is a must-know tool. Its integration of TWAMM technology, its transparent codebase, and its monetary policy-aware design make it a pioneering step in decentralized financial infrastructure.
📘 Learn about AMMs: Binance Academy