Next Level Swaps: SwapSpaceExplained

Next Level Swaps: SwapSpaceExplained


This post is special from the others that you generally see from me in that it's the first time I'm posting exclusively to Publish0x, but also my first time entering one of the contests on here. I'm going to be talking about SwapSpace, a fairly new protocol that is facilitating swapping between different cryptos in a very exciting way.

For the usual disclosure, I am not a financial advisor, I don’t even work in finance at all. My day job is as a telecommunications software engineer. Treat everything you read here as some educational resources and not financial advice.

What Is SwapSpace

At it's core, SwapSpace is a platform that facilitates swaps between different cryptos. Nothing new right? Well, this platform actually aggregates across a lot of different platforms, helping you find the best rates you can, lets you swap between blockchains in one step, and, as you'll see below, actually lets you save money on transaction fees overall. You can even pull off some smaller swaps than would be generally worth the effort.

As a test last night, when I first learned of SwapSpace, I did a very small Bitcoin Cash (BCH) to Cardano (ADA) transaction. I'll walk through a couple of examples below to show how it all works and highlight some very key elements I very much enjoy about this platform already below, but let's look at that simple transaction first.

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So, taking a look at the completed transaction here, we can see that it was a pretty small swap, just 0.006 BCH to 2.0463 ADA, nothing major but I earn the BCH from my posts over on read.cash, that I generally swap to something else after it builds up a bit, so it's a good one to use for this post. The BCH is worth about $2.65 USD and the ADA is worth about $2.39 USD, which is about what it was when I did the swap, so I've paid about $0.26 USD for this swap.

If I was to do this same swap the old fashioned way, which would have taken a few steps, and a lot of gas, it would have cost me a heck of a lot more than 26 cents. Just the ADA transaction fee is generally 1 ADA, which itself is well over that price. But no intermediate steps, no sending my crypto to an exchange to swap, or having to use some crazy multistep process to do it, which wouldn't be worth the transaction costs for such a small transfer.

And it simple, we'll walk through it below, but the gist of it is, you setup the swap telling it how much you want to exchange into what, the wallet address to send your output to, and then it gives you an address to send you input into. You send it off and wait until the transactions are all confirmed and then boom, what you wanted shows up in your wallet like magic.

Now, one thing I did notice that really gave me a scare but turned out to be nothing was that there is a 30 minute input timer that runs from when you click to start the transaction. It took a bit longer than that for my BCH transaction to go through, Exodus didn't use a huge gas amount, so it took awhile. After the 30 minute timer elapsed, I got a scary message that said "Input timer has expired" and I was worried that I wouldn't get my output because it took too long. But, after the transaction hit the required number of block confirmations, my ADA arrived safe and sound.

Examples

Let's walk through a quick example swap on SwapSpace and see how quick and easy it is, and I'll highlight some of the things I find especially good along the way, and for the second example, I'm going to go through what I think is personally a hidden gem of the platform for people that are dealing with smaller stacks in the market, like I am.

For this one, I am going to swap the remaining balance of my BCH that I have stored up to this point. I'm going to use 0.0634 BCH, since I need to save a little for gas to send the transaction over, and I am going to convert this over to PancakeSwap (CAKE) to boost one of my positions in the tasty syrup pools over there. Let's hop on over to SwapSpace and get this party rolling. You can use my handy little affiliate link that has been plastered across the article if you want, helps support me if you are so inclined.

First, we pick out cryptos and plug in the amount we want to send, and it will show you what the best deal is going to get you right off:

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Now this updates in real time as prices change, but we want to go ahead and click the View Offers button there and we are going to see a list of exchanges that will facilitate our trade, and even show that ones that would require a higher minimum in case you are curious to see if those give a better rate and are only slightly higher than you are working with:

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Obviously our best option is the top one, going through StealthEX, but there are a few options that we could be using. Now I want to point out something here, there are two types of rates you can get. Variable and Fixed. Variable is what I'm getting from this, where the exchange rate will fluctuate until it actually completes with the market, but there are fixed ones that lock in for your transaction, but as you can see those require a fair bit higher of a minimum exchange.

Then we go ahead and click the Exchange button next to the one we want, in this case I'm going with the top option of StealthEX: 

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Next we get a screen where we plug in the wallet we want to send the CAKE to, plus we can enter in a change address for any BCH change, in this case I'm just using the same one I'm sending it from, no harm in that, anyone seeing the transaction will already have that as my input address anyways. Nothing strange here, we just tell it where to send out funds to and hit the next button:

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Here it tells us the address that we need to send our funds to, so we just hop over to whatever wallet we are using, in my case Exodus, and crank out a transaction over to that wallet for the amount we need to send and then we kick back and wait. After a few minutes, once the transaction is seen, the screen will update and show us that it sees the input transaction:

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Here we can see that it's detected our input transaction, and we just need to wait for it to hit the required confirmations on the blockchain, and then for the exchange to get processed. After a little bit of time, the screen will update again and you'll see something like this:

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Bam, the transaction has gone through and we can jump into MetaMask and confirm it's there:

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Now, the first thing you'll notice is the amount of CAKE obviously changed throughout the transaction, that's the variable rates at work. It can work in your favor or against you, but it didn't shift by much. But to reiterate what I just did here. I took BCH that was sitting in my Exodus wallet, on the Bitcoin Cash network, and I made it appear as CAKE in my MetaMask wallet, over on the Binance Smart Chain, for a few cents worth of transaction fee, in 1 step.

To do this before, I'd be looking at sending the BCH to Binance, converting it to BNB, sending that out to BSC, and then buying CAKE off PancakeSwap. Paying transaction fees all along the way.

Now, I want to point out another example, which I think really highlights what this platform can do, and that is save you money on simple swaps. How much is Ethereum gas prices right about now? Quite a bit, right, well, lets look at this:

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If you do the math there, the difference is about 63 cents. To do a swap and get a transaction on Ethereum. You can't even really do wallet to wallet transfers that cheap, let alone swaps on an exchange, so these guys really do seem to be working hard to get swaps done on the cheap for everyone.

Conclusions

First, I have to start by doing the responsible thing and reminding everyone that all crypto things are risky, so Do Your Own Research before you go throwing lots of money through newer protocols. And I know this is not my usual deep dive into how a protocol works, but don't worry, that post is coming and will come out through my usual postings, but I wanted to use this post more as a highlight the features.

I really thing this platform is good, especially for those of us who are not playing with huge stacks, and want to save every Satoshi we can on transaction costs, and I think these guys just hit the ball out of the park. I literally looked into this platform last night, and I am excited to say I will be using it very often, and I think everyone should at least give it a good consideration.

I've completed a few transactions at this point, and other than my "holy shit" moment last night when I thought the transaction would fail because the input took too long, which was quickly fixed by it still going through anyways, it's been a fast and painless process to move cryptos between blockchains and get some swaps done on the cheap.

Socials And Other Links

Find me on social media on TwitterFacebookInstagramTelegram and noise.cash.

If you enjoyed this content, you can check me out every weekday. My posts start at my website, but you can also find them cross posted at Publish0xLeoFinancialHive, and read.cash.

I also post a weekly price update video every Saturday over on my YouTube channel, where I will be discussing the weekly price action for some of the major cryptos. You can also sign up for my newsletter which I send out every Friday with news and whatnot from the crypto space, delivered right to your inbox!

You can also find links to resources such as research and news sites over at this link.

Want some more content right now? Check out some of my previous posts:

DeFi Derivatives
Chainlink
Flash Loans

SwapSpaceExplained, #SwapSpaceExplained

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CryptoWingnut
CryptoWingnut

I write about crypto stuff https://ninjawingnut.xyz


NinjaWingnut's Crypto Blog
NinjaWingnut's Crypto Blog

I'm not a financial advisor - I just play one on the internet. I write about crypto and crypto related things. Posts are cross posted from my blog at https://ninjawingnut.xyz

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