Launched in September 2019, ParaSwap is an Ethereum-based decentralized exchange (DEX) aggregator. When a user wishes to make a transaction, ParaSwap searches many of Ethereum’s major exchanges and automated market makers to get the best price.
ParaSwap has also developed MultiPath, a pathing protocol that considers gas taxes and other variables while looking for the best deal on one transaction. ParaSwap analyses rates on every supported DEX for each trade and makes further adjustments to achieve the best rate possible – sometimes even outperforming the markets!
Connecting Your ParaSwap Account To ZenLedger
- To import your transactions, log in to ParaSwap and copy your receiving address.
- Paste the receiving address you copied from ParaSwap into the wallet address field in ZenLedger.
- Select the proper coin from the dropdown list.
- Select if the wallet is based in the USA or not.
- Then hit add coin.
How To Generate ParaSwap Crypto Tax Forms
After you’ve connected your Paraswap account, completed your import, and confirmed that your transaction information and tax liabilities are correct, simply click to download your forms!
How To Use ParaSwap
As a new ParaSwap user, confused about where to start, all you’ll need is an Ethereum wallet such as MetaMask to make use of the platform. It must be noted that MetaMask is supported on the ParaSwap website as a third-party service that integrates with the ParaSwap API that can also access the services of ParaSwap.
What Is ParaSwap Pool?
ParaSwapPool provides customers access to ParaSwap’s own Market Maker pool. To get the best rates, ParaSwap ensures that all relevant trades are conducted on the ParaSwapPool. This opens up even more possibilities for pathing and optimization of transactions.
The ParaSwapPool is handled in the same way as any other decentralized exchange. The liquidity in the ParaSwapPool is an aggregate pool of professional liquidity investors. The ParaSwapPool obtains liquidity from private investors using a request for quotation method.
How Does ParaSwap Function?
- The user enters a token pair and an amount, such as 3000 DAI for ETH
- ParaSwap compares the rate on all of the exchanges it supports that have the pair
- ParaSwap gives the user a detailed summary of the best trading route that has been identified
- To confirm this transaction and complete the exchange, the user should click the “Swap Now” button
- The swapping contract completes the transaction and sends the user the purchased tokens
What Is The Multipath Feature On Paraswap?
MultiPath is the pathing protocol developed by ParaSwap. Automated market makers (AMMs) and decentralized finance (DeFi) lending systems can both function with MultiPath. Users of ParaSwap can easily route their transactions over some of the most popular DeFi protocols with the MultiPath Feature.
Why Should You Use ParaSwap?
ParaSwap is an interface that makes it easier for users to engage with DeFi services. It brings liquidity from the biggest decentralized exchanges in a user-friendly interface, abstracting the majority of the swaps’ difficulty and making it easy for end-users.
Here are some benefits/ reasons to use ParaSwap:
- ParaSwap provides a solution for decentralized finance (DeFi) liquidity
- The pathing analysis employs the ParaSwapPool, which frequently results in higher exchange rates
- The ParaSwap routing algorithm analyses token rates on all connected exchanges
- To complete a trade on ParaSwap, the transaction may be routed through numerous exchanges. However, the deal will be completed with a one-time gas fee to meet the Ethereum network’s minimal computing charges
- When the Ethereum network becomes overloaded and gas fees rise, ParaSwap utilizes its tokenized gas in the form of GST2 tokens. Any gas savings obtained through the usage of GST2 tokens is refunded to the user.
How Much Does ParaSwap Charge?
The service provided by ParaSwap is free of charge. However, ParaSwap does charge a gas fee. It must be noted that a specific amount of computational power is required to complete a transaction on the Ethereum blockchain, referred to as “gas.”
The gas fee on ParaSwap is not a fixed amount and might vary significantly depending on the size of the transaction and the level of activity on the network.
ParaSwap provides a simple and smooth user experience for trading tokens on their platform. To get the best rate, the unique MultiPath routing system searches widely across all integrated exchanges and important token pairings. MultiPath also considers gas fees, slippage, and other pricing factors.
Developers can easily integrate ParaSwap into their decentralized apps. ParaSwap looks to be well-positioned in the future of decentralized finance (DeFi), thanks to its efficient protocols for both traders and developers.