❔Frequently Asked Questions (FAQs)
Want to know more about AndromedaSwap or find a quick answer to a question you have? You may find a number of associated questions that could offer solutions to your problems. Check out these FAQs.
Q: What service does AndromedaSwap offer on Aleph Zero?
A: AndromedaSwap enables users to trade/swap Assets (Tokens/Currencies) at market rates as well as lock tokens for scheduled future release.
Q: Why does swap fail and point to Slippage?
A: You may need to increase your slippage in situations that involve pools with high volatility. The higher your slippage in a swap transaction involving a volatile pair, the higher the chances of it being successful.
Q: Which wallets can I use to connect to the AndromedaSwap dApp?
A: You can use any of the Browser extensions:
Subwallet (Recommended): https://chrome.google.com/webstore/detail/subwallet-polkadot-extens/onhogfjeacnfoofkfgppdlbmlmnplgbn
Nightly https://nightly.app
Or you can use NOVA mobile wallet.
Q: How do I get my token logo on AndromedaSwap?
A: You can send a mail to support@andromedaswap.org and keep in touch with us to get your token graphics submitted to our platform.
Q: How are the prices of tokens determined when a pool is created?
A: The prices of tokens are determined by a ratio-based formula. Say there are 1,000,000 "Asset A" in a pool and 5,000,000 "Asset B" in the same pool, then the price of Asset A in Asset B is 0.2. This means 1 Asset A will make 5 Asset B. Also, the UI for creating pairs has an "Estimated value" output that shows the price based on provided values.
Q: Can LP tokens be traded?
A: The LP tokens can be traded like any other PSP22 token, but that must be done with care because it represents ownership of shares on the protocol and can lead to a decline in the number of shares one has if one loses their LP tokens.
Q: What is impermanent loss?
A: CoinMarketCap defines impermanent loss as “the temporary loss of funds occasionally experienced by liquidity providers because of volatility in a trading pair.” To put this into perspective, if you are holding an LP token, and one of the assets depreciates in the short term, but gradually returns to the original price, then you would have lost value "impermanently." Alternatively, if the same asset appreciated before reverting to the mean, you would have had "impermanent gains." These metrics can help liquidity providers balance their portfolios for optimal ratios. For instance, if you think a token will appreciate, and then revert to the mean, you might provide liquidity before it appreciates, just to accumulate the fees for that duration. If you'd like to learn more about impermanent loss, the following articles may be useful: https://pintail.medium.com/understanding-uniswap-returns-cc593f3499ef https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22
Q: Can't the AndromedaSwap team change the rules of contracts and take all the tokens?
A: No. The contracts will be published with rules that forbid anyone to change them. The team will have no way of taking assets from Pool accounts or modifying any of the contract codes.
Q: Does that mean the AndromedaSwap product will never change or improve?
A: No. The contracts themselves cannot be updated but the interface may be improved and may even interact with new contracts. If the team persuades the community that the new contracts offer advantages, the Poolers will want to move their assets to the new accounts. The old contracts will still exist and Swappers and Poolers will still be free to use them as they wish.
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