How Coinshift users can swap tokens on ParaSwap.
ParaSwap, a decentralised exchange aggregator, offers a simple and secure method to exchange Ethereum-based tokens by consolidating liquidity from numerous decentralised platforms into one unified interface.
Accessing ParaSwap via Coinshift apps offers several benefits to a Treasury Manager, including
- Best Trading Rates- ParaSwap provides the best trading rates by sourcing liquidity from various decentralised exchanges (DEXs). Treasury managers can use it to compare the prices offered by the leading DEXs
- Streamlined Batch Processing- With batch transaction capabilities, treasury managers can approve and swap tokens simultaneously, enhancing operational efficiency and reducing gas costs
- High Liquidity and Diversification- Access to multiple DEXs ensures high liquidity, enabling large trades without drastically impacting market prices. Managers can exchange their Safe assets to diversify their portfolios
- Reduced Slippage- By routing trades through the DEX that provides the best rate, ParaSwap minimises the price slippage usually associated with larger trades
- Risk Mitigation- Diversifying transactions across different DEXs minimises dependency on any single exchange, reducing liquidity risk
- Operational Efficiency- Coinshift's single interface allows treasury managers to manage multiple crypto assets across different protocols saves time and simplifies operations
However, note that since Coinshift offers multi-sig, there may be instances where not all Signers are available when executing a swap. This can potentially lead to slippage issues, where the price at execution differs from the expected price due to a delay in transaction confirmation. Therefore, timing and coordination among Signers are crucial in this setup.
You are advised to execute the transaction within 5 minutes after the first approval to avoid transaction failure.
We will now outline the process of how Coinshift users can interact with ParaSwap directly from their Safe using Coinshift Apps.
Navigate to the Apps section on your Coinshift dashboard.
Locate and click on ParaSwap within the Apps section.
A window will appear showing the list of networks the dApp is live on and supported by Coinshift. You can choose a Safe belonging to any network supported by ParaSwap.
Select the Safe (highlighted below) you wish to work with and click on Open App to establish a connection between your selected Safe and ParaSwap.
Within Coinshift, transactions begin as proposals, providing flexibility in approvals. Please note that non-signers can create proposals, but only Signers can approve them.
To execute a swap, navigate to the Swap tab.
Then, select the token and the amount you wish to pay, as well as the token you wish to receive. ParaSwap will provide a calculated return based on your input.
Check the prices offered by different exchanges displayed on the right side of the interface.
Upon finalising the details, click on Review Trade.
Next, check the swap summary and confirm the process by clicking on Confirm Trade.
This will trigger the process of creating a proposal on Coinshift.
Note that, transaction details are presented in a clear, human-readable format (see screenshot), providing essential information for other Safe Signers to review.
Add any relevant notes and labels and finally, hit the Create Proposal button to create an off-chain proposal for your transaction.
Following the creation of a proposal, Safe Signers have the authority to Approve or Discard the proposal as necessary.
Signers can take one of three actions on a proposal:
- Proposal Rejection- If any Safe Signer rejects the proposal, it will be discarded Off-Chain.
- Proposal Approval and Execution- If the number of votes in favor of the proposal meets Safe's required threshold, the transaction will be submitted to the network.
- On-Chain Transaction Rejection- Even after a proposal has been approved, it can still be turned down in the on-chain stage. This can happen if a Safe Signer initially approves the proposal, moving it into the on-chain queue, but other Safe Signers decide to use the On-Chain Rejection option to stop the transaction.
The proposal has received the necessary signatures, as shown in the screenshot below, and the transaction will be submitted to the network.
Wait for the transaction to complete.
Congratulations, you've successfully executed a swap transaction in ParaSwap via your Coinshift dashboard!
Finally, head over to the Portfolio section of your dashboard to see the newly swapped token.