How to use a decentralized exchange (DEX)? (Uniswap, PancakeSwap)

Connecting Your Wallet to a DEX

1. Install a compatible wallet extension like MetaMask or Trust Wallet on your browser or mobile device.

2. Ensure the wallet is funded with the native token of the target blockchain—ETH for Ethereum, BNB for BSC, MATIC for Polygon.

3. Navigate to the official DEX website—verify the URL carefully to avoid phishing sites.

4. Click the “Connect Wallet” button located in the top-right corner of the interface.

5. Select your wallet from the list and confirm the connection request within the wallet popup.

Swapping Tokens on Uniswap

1. Choose the input token by clicking the “Select a token” field and searching for the asset you wish to trade away from.

2. Enter the amount you want to swap; the interface will display the estimated output based on current pool liquidity.

3. Review slippage tolerance settings—default is often 0.5%, but volatile tokens may require higher values.

4. Confirm the transaction in your wallet; gas fees will be displayed before signing.

5. Wait for blockchain confirmation—Ethereum swaps typically take 10–30 seconds under normal network conditions.

Providing Liquidity on PancakeSwap

1. Go to the “Liquidity” tab and click “Add Liquidity” to begin depositing two tokens into a pair.

2. Select both tokens and input amounts that maintain the correct ratio according to the current price oracle.

3. Approve each token separately if they haven’t been authorized for use by PancakeSwap’s smart contracts.

4. Confirm the add-liquidity transaction in your wallet; you’ll receive LP tokens representing your share.

5. LP tokens can be staked in farms to earn additional CAKE rewards or withdrawn at any time.

Understanding Transaction Fees and Slippage

1. Every swap incurs a protocol fee—0.3% on Uniswap v2, 0.25% on Uniswap v3, and 0.2% on PancakeSwap v2.

2. Network gas fees are paid in the chain’s native currency and vary depending on congestion and transaction complexity.

3. Slippage occurs when large orders move the price between order placement and execution; it’s measured as a percentage deviation.

4. High slippage tolerance increases execution probability but risks unfavorable pricing—especially during rapid market shifts.

5. DEX interfaces show real-time impact estimates before submission, allowing users to adjust inputs accordingly.

Frequently Asked Questions

Q: Can I use Uniswap on networks other than Ethereum?Yes. Uniswap v3 is deployed on Optimism, Arbitrum, Base, Polygon, and Celo. Each deployment operates independently with its own liquidity pools and token listings.

Q: Why does my PancakeSwap transaction keep failing?Common causes include insufficient BNB for gas, low slippage tolerance during volatility, outdated wallet balance cache, or attempting to swap unsupported tokens on the selected network.

Q: Are DEX transactions reversible?No. Once signed and broadcast, all transactions are immutable and irreversible. Users must double-check recipient addresses, token symbols, and amounts before confirming.

Q: Do I need KYC to use Uniswap or PancakeSwap?No. These platforms operate without identity verification. Access is permissionless—anyone with a compatible wallet and network connection can interact directly with smart contracts.