DeFi Swap Guide – How to Use DeFi Swap With Trust Wallet

DeFi Swap is a newly launched decentralized finance platform that allows users from all over the world to maximize their cryptocurrency investments.

Put simply, not only does DeFi Swap allow you to instantly swap one digital currency for another without requiring a centralized provider, but you can also earn an attractive yield on idle tokens.

This is possible through both crypto yield farming and liquidity pool contributions.

The purpose of this guide is to explain how the DeFi Swap platform works, alongside a comprehensive step-by-step walkthrough of how to make the most of its exchange and yield-generating services when using Trust Wallet.

What is DeFi? An Overview of Decentralized Finance 

Decentralized Finance, or DeFi, is an emerging industry that aims to remove centralized third parties from everyday financial services. This includes everything from banking and trading to insurance and foreign exchange.

The overarching concept is that through the use of blockchain and smart contract technologies, people can access their desired financial services in a decentralized manner. This offers readily available solutions to a plethora of real-world problems found in the traditional financial sector.

For example, should you wish to earn interest on capital you have saved, conventional banks from major economies rarely pay an APY (Annual Percentage Yield) of more than 1%.

This has been the case since the 2008 financial crisis, which has been further amplified by ongoing quantitative easing programs initiated by central banks. In comparison, leading platforms like DeFi Swap enable you to earn double or even triple-digit APYs on cryptocurrency deposits.

Another core issue associated with the traditional finance space that DeFi solves is with respect to exchange services. For instance, should you wish to exchange one currency for another – whether that is in the form of fiat or crypto assets, you are required to go through a third party.

This might be a bank, FX broker, or centralized cryptocurrency exchange – depending on the asset you wish to convert. Either way, centralized bodies often charge hefty fees for facilitating exchange services. You also need to trust that your assets are in good hands while the transaction is being executed on your behalf.

This is in stark contrast to how DeFi works, as there is no involvement from third-party intermediaries. Instead, through smart contract agreements, you can instantly swap one digital currency for another at the click of a button, at fees that often average just a very small fraction of a dollar.

The above examples are just two of many. The core takeaway here is that within the next decade, many market commentators argue that a large segment of the traditional financial services sector will be replaced by DeFi.

And therefore, DeFi Swap aims to become the go-to platform for all decentralized finance services for people from all walks of life.

What is DeFi Coin? 

At the forefront of the DeFi Swap ecosystem is its native digital currency – DeFi Coin.

DeFi Coin sits at the heart of all transactions that take place on the DeFi Swap platform.

This means that when an investor or trader decides to use DeFi Swap to convert digital currencies or generate an attractive APY via farming or liquidity pool provision, this has a hugely positive impact on the value of DeFi Coin in the open marketplace.

Furthermore, the underlying smart contract that governs DeFi Coin has an innovative taxation policy in place that encourages token owners to HODl in the long term. This stands at 10% of the transaction amount – which subsequently penalizes and discourages short-term market speculators.

The taxation that DeFi Coin collects from buy and sell orders is subsequently invested back into the broader DeFi Swap ecosystem. This is because 50% of the collected tax is distributed to existing DeFi Coin holders. The other 50% is deposited into the DeFi Coin liquidity pool via a smart contract agreement.

How to Buy DeFi Coin via Trust Wallet

DeFi Coin is available to buy on DeFi Swap – meaning that you can purchase the token in a decentralized manner.

If you are completely new to the concept of purchasing digital currencies without a third-party operator, the sections below will walk you through the process with Trust Wallet.

Step 1: Download and Set Up Trust Wallet

The first step is to download Trust Wallet to your Android or iOS device. Once installed, you will then need to set your wallet up.

Then, you will be shown a 12-word backup passphrase. Make sure that you write this down in the correct order and that you keep the respective sheet of paper somewhere safe.

You will then be asked to re-enter the 12 words in the correct order so that Trust Wallet knows you have written your passphrase down correctly.

Finally, you will be asked to choose a PIN for your wallet. You will need to enter this PIN every time you wish to log into your Trust Wallet account.

Step 2: Transfer BNB to Trust Wallet

You will now need to add some BNB tokens to your Trust Wallet so that you have funds to buy DeFi Coin. You can easily buy BNB from an online exchange like Binance.

The general process of buying BNB from an exchange like Binance is as follows:

• Step 1: Open Exchange Account: First, you will need to open an account with Binance or any other exchange of your choosing.
• Step 2: KYC: As you will be using fiat money to buy BNB, you will need to get yourself verified. At Binance, you can do this instantly by uploading a copy of your government-issued ID.
• Step 3: Buy BNB: Finally, if you are looking to buy BNB with your debit/credit card, enter the amount of money that you would like to allocate. Then, enter your card details when prompted and confirm the transaction.

In order to get your wallet address, click on ‘BNB’ from your Trust Wallet interface, followed by ‘Receive’. You can then click on the ‘Copy’ button and paste the address into the external wallet or exchange where your BNB tokens are located.

Alternatively, you can also buy BNB directly from within your Trust Wallet app with a debit or credit card.

If choosing this option, you will need to go through a quick KYC process – which requires a copy of your government-issued ID.

Step 3: Connect to DeFi Swap

Now you can connect to DeFi Swap to complete your DeFi Coin purchase.

First, you will need to click on the ‘DApps’ button, which you will find at the bottom of the Trust Wallet interface.

You will then see a URL box at the top of the page. Here, you will need to enter the following address:

https://defiswap.io

You will then land on the mobile website of the DeFi Swap exchange.

Step 4: Enter Swap Amount

The next step is to let DeFi Swap know how many DEFC tokens you want to buy. The easiest way to do this is to type in the number of BNB tokens that you wish to swap for DeFi Coin.

In our example, we are looking to swap 0.02 BNB – which, based on current market prices, will get us 19.2473 DEFC. Next, click on the ‘Swap’ button.

Step 5: Confirm and Buy DeFi Coin

You will now need to confirm your swap one more time. As you will see in the image below, DeFi Swap displays the intimate details of the swap – in terms of how many tokens are involved and the respective network fees.

If everything looks correct, proceed to click on the ‘Confirm Swap’ button. In doing so, the BNB tokens will be deducted from your balance and the equivalent DEFC will be added to your Trust Wallet.

Step 6: Add DeFi Coin to Trust Wallet

Although you have now purchased DeFi Coin, there is actually one more step to complete – you will need to add DEFC to your Trust Wallet interface. This is because, by default, Trust Wallet only lists a small selection of large-cap tokens.

In order to add DEFC to your Trust Wallet interface, click on the icon at the very top-right hand corner and scroll down to the bottom.

Then, click on ‘Add Custom Token’. Next, change the network from ‘Ethereum’ to ‘Smart Chain’. You will then need to add the DeFi Coin contract address, which you will find below:

0xeb33cbbe6f1e699574f10606ed9a495a196476df

You can also obtain the DeFi Coin contract address from CoinMarketCap at the following URL:

https://coinmarketcap.com/currencies/defi-coin/

Copy the contract address and paste it into the relevant field in Trust Wallet.

Once you click on the ‘Done’ button, you can go back to your main Trust Wallet interface and you should see your newly purchased DeFi Coin tokens. Best of all, as DeFi Coin is listed on CoinMarketCap, you can view the value of your DEFC investment in real-time.

How to Exchange Crypto Tokens on DeFi Swap 

One of the most popular features found on the DeFi Swap platform is the ability to convert one crypto token into another without needing to use a third-party operator.

Instead, once you enter your requirements and confirm the swap, the underlying smart contract will complete the exchange on your behalf.

In the sections below, you will find a step-by-step walkthrough of how to exchange crypto tokens on the DeFi Swap platform.

Step 1: Connect Wallet to DeFi Swap

Before you can swap tokens, you will need to connect your wallet to the DeFi Swap platform.

In our earlier guide on how to buy DeFi Coin with Trust Wallet, we showed you the process when using the mobile app.

However, when using DeFi Swap, you will get the very best user experience when accessing the platform through your laptop or desktop computer.

This can be achieved with ease via the WalletConnect option that DeFi Swap offers. This simply means that you will be initiating a secure connection from your Trust Wallet app on your smartphone over to the DeFi Swap desktop platform via a barcode scan.

To get the process started, click on the ‘Connect Wallet’ button on the DeFi Swap website via your desktop device followed by ‘WalletConnect’.

You will then be shown a unique barcode. Next, open up the Trust Wallet app on your smartphone and click on the ‘Settings’ button followed by ‘WalletConnect’.

After clicking on ‘New Connection, Trust Wallet will then populate a QR scanning tool. All you need to do now is hold your smartphone camera up to the previously mentioned QR code that is displayed on the DeFi Swap website.

In doing so, this will populate a connection between Trust Wallet and DeFi Swap.

Step 2: Choose Token That You Want to Swap

The next step is to choose the token that you wish to swap. This is the token that you currently hold in your wallet.

By default, BNB will be selected by the DeFi Swap platform.

In order to change this, you simply need to click on ‘BNB’ and type in the name of the digital currency that you wish to use for the swap.

With that said, we are looking to use BNB as our base currency anyway, so we will leave the swap box as it is.

Step 3: Select the Token You Want to Receive

The next step is to choose the token that you wish to receive once the swap is complete. By default, DEFC is selected.

You can choose your preferred token by clicking ‘DEFC’ and typing in the name of the respective token.

Once again, we will leave the swap box as it is, as we are looking to exchange BNB for DEFC nonetheless.

Step 4: Enter Token Swap Quantity

The next step is to specify the number of tokens that you wish to swap.

In this example, we are looking to swap 0.004 worth of BNB – which gets us 10.3082 DEFC. This exchange rate is based on real-time market prices.

You will then need to click on the ‘Swap’ button.

Step 5: Confirm Swap

All that is left for you to do now is confirm the swap. This will give you the opportunity to review your order. If you are confident that you have entered the correct information, click on the ‘Confirm Swap’ button.

Trust Wallet will then require authorization on the app itself.

As such, you will notice that the Trust Wallet app populates a notification on your smartphone, asking you to confirm that you would like to use your balance to complete a trade on DeFi Swap. Click the relevant button to confirm.

If the token you have just purchased does not display in your Trust Wallet interface, then you can add it manually by pasting in its contract address.

As noted earlier, you can do this by clicking on the ‘Add Custom Token’ button via the Trust Wallet app, changing the network to ‘Smart Chain’, and pasting in the address before clicking on ‘Done’.

Crypto Yield Farming – An Overview of How Yield Farming Works

This guide previously mentioned that one of the core segments of the traditional financial sector that DeFi will challenge is that of interest-earning accounts.

To reiterate, a recent study found that the average checking account in the US yields an interest rate of just 0.03%.

Savings accounts in the US pay a marginally higher average interest rate of 0.06%. However, even at 0.06%, a $10,000 deposit would yield just $6 over the course of a year.

In comparison, crypto yield farming offers highly attractive interest rates of double or even triple-digit APYs. This will often depend on the digital token that you are looking to earn interest on and the respective platform.

In terms of how crypto yield farming works, this is not too dissimilar to a conventional savings account. This is because the main concept is that you will deposit your idle digital tokens into a yield farming platform and in return – generate a competitive rate of interest.

Yield farming platforms like DeFi Swap are able to facilitate high APYs as the tokens that you deposit are put to good use. More specifically, the tokens will often be lent to borrowers via loans that are secured by crypto.

In other circumstances, tokens deposited into a yield farming plan might be utilized for the provision of exchange liquidity. Either way, crypto yield farming can be viewed as a completely passive way to generate income on your digital asset investments.

Furthermore, you retain ownership of the respective crypto assets, meaning that you will still benefit if the market value of the token increases.

Most importantly, crypto yield farming operates in line with the overarching ethos of decentralized finance and DeFi Swap, insofar that the end-to-end process is free from centralized third parties and intermediaries.

Instead, each and every transaction associated with the crypto yield farming ecosystem is facilitated by smart contracts – which are both transparent and immutable. This means that you can be confident that your funds are well looked after – as there is no human intervention.

How to Farm Crypto Tokens on DeFi Swap for High APYs 

If you are looking to maximize your potential crypto gains via a yield farming strategy, the entire process can be completed on the DeFi Swap platform in a matter of minutes.

With that said, if you are completely new to this concept, our guide will now walk you through the crypto yield farming process every step of the way.

Step 1: Connect Wallet to DeFi Swap Platform

The first step is to connect your Trust Wallet app to the DeFi Swap website on your desktop device.

You can scroll up to review the process of setting up Trust Wallet if you have yet to complete this step.

Nonetheless, all you need to do is click on the ‘Connect Wallet’ button followed by  ‘WalletConnect’, before authorization the connection on your Trust Wallet app.

Step 2: Choose Token to Farm

The next step is to choose the crypto token that you are planning to farm. Put otherwise, this is the token that you currently own and that you wish to earn interest on.

In this example, we are selecting DeFi Coin.

Step 3: Select Lock-Up Term

A notable feature offered by the DeFi Swap platform is that you can choose your preferred lock-up period. This refers to the number of days that your tokens will be locked away for and thus – you will be unable to make a withdrawal until this period concludes.

Naturally, the longer that you are happy to lock your tokens away, the higher the APY that you will be able to generate.

DeFi Swap typically offers four core plans – Bronze, Silver, Gold, and Platinum.

To give you an idea of the yields on offer, consider the example below when farming DeFi Coin:

Bronze: 30 Days – 30% APY

Silver: 90 Days – 45% APY

Gold: 180 Days – 60% APY

Platinum: 365 Days – 75% APY

As you can see from the above example, over the course of one year, you can earn an APY of up to 75% when yield farming DEFC on the DeFi Swap platform.

This means that for every 10,000 DEFC tokens deposited, you would generate an additional 7,500 tokens on a 12-month basis. As noted, this financial benefit is in addition to any token value gains that DEFC makes in the open market.

Step 4: Enter Amount and Confirm Chosen Yield Farming Plan

Once you have chosen the lock-up plan that suits your investment goals, you will need to type in the number of tokens that you wish to farm.

In the example below, we are looking to farm 10,000 DEFC tokens.

Then, you will need to click on the ‘Approve’ button. In doing so, a Trust Wallet pop-up notification will once again appear. This will ask you to confirm the transaction.

When you do, the tokens will be transferred from your Trust Wallet and into your chosen crypto yield farming plan.

And that’s all it takes when farming crypto on the DeFi Swap platform. There is nothing else for you to do until your chosen lock-up period concludes.

When it does, you will receive your initial tokens deposit back into your Trust Wallet, alongside the interest that you have earned.

Liquidity Provider Rewards – An Overview of How to Make Money by Providing Liquidity 

Another core segment of the DeFi sector that allows you to generate interest on your idle digital assets is liquidity provision.

In its most basic form, you will initially deposit your tokens into a decentralized finance platform like DeFi Swap. Then, then tokens will be allocated to a pool, which in turn, provides liquidity for the DeFi Swap exchange.

This ensures that people can use the DeFi Swap platform to convert digital tokens in a smooth and efficient manner. It also ensures that there are enough tokens available to facilitate your intended swap.

In return for providing liquidity to DeFi Swap, you will be paid a rate of interest. The interest that you earn is paid for via the trading fees that the DeFi Swap exchange collects from buyers and sellers.

Each and every transaction that goes through the DeFi Swap exchange will earn you a 0.25% commission on all trades. This means that as DeFi Swap continues to increase its overall daily trading volume, the amount of interest you earn will also rise.

How to Provide Liquidity on DeFi Swap to Earn a Share of Trading Fees

If you like the sound of earning 0.25% of all trading fees collected by the DeFi Swap exchange, this segment of our guide will explain how to utilize this feature.

Step 1: Connect Wallet to DeFi Swap

Once again, the first step is to connect your Trust Wallet to the DeFi Swap platform by clicking on ‘Connect Wallet’ followed by ‘WalletConnect’.

You can scroll up for a step-by-step recap on how to connect Trust Wallet to DeFi Swap.

Step 2: Choose Input Token

The next step is to click on the ‘Add Liquidity’ button.

This will then present you with a box that requires you to specify your input tokens. When providing liquidity, you are doing so for a specific trading pair.

For example, let us suppose that you are providing liquidity for the pair BNB/DEFC. This means that you would need to deposit both of the respective tokens into the DeFi Swap liquidity pool.

You can choose which tokens you wish to add liquidity for by clicking on the relevant button and choosing the crypto asset from the list of supported options.

Step 3: Enter Amount of Token Liquidity

Once you have selected the pair that you wish to provide liquidity for, you will then need to specify the total number of tokens.

In the example below, we are looking to provide liquidity worth 0.004 BNB.

When we type this figure into the relevant box, the underlying DeFi Swap smart contract informs us that this translates into 7.00088 DEFC.

And as such, we would need to cover 0.004 BNB and 7.00088 DEFC.

Step 4: Confirm Liquidity Platform

The final step required to start earning your share of trading fees collected by the DeFi Swap platform is to confirm the transaction.

In our example, this would require us to click on the ‘Approve DEFC’ button. The button will, however, display the respective base token that you are looking to provide liquidity for.

Finally, a notification will populate on your Trust Wallet app asking you to confirm the transaction with DeFi Swap.

Once you do, you will be entitled to 0.25% of any trading fees collected when buyers and sellers trade the respective pair on the DeFi Swap platform.

Commonly Asked Question on DeFi Swap

The most common questions and queries that we receive from new and existing users of the DeFi Swap platform can be found below.

Converting Tokens on DeFi Swap

What toke ns does DeFi Swap support?

DeFi Swap currently supports tokens listed on the Binance Smart Chain. This means that in order to benefit from the best market price and fees possible, you should use BNB as your base currency when using the Defi Swap platform.

How do I pay transaction fees?

Transaction fees – which are determined by the underlying DeFi Swap platform, are paid in BNB. Once again, this is because DeFi Swap operates in conjunction with the Binance Smart Chain.

What wallets does DeFi Swap support?

The vast majority of users will connect their MetaMask wallet to the Defi Swap platform. This is because MetaMask not only comes in the form of a mobile app but a browser extension too.

As such, this makes the process of using DeFi Swap easier, as you can complete transactions on a laptop device.

With that being said, DeFi Swap also supports WalletConnect. This means that you can use any wallet of your choosing – as long as it can connect to the Binance Smart Chain.

This includes Trust Wallet – which is also a popular option to trade BSc tokens. All you need to do is scan the QR code on DeFi Swap via your Trust Wallet app, and this will create a secure connection.

Do I need to register an account to use DeFi Swap?

DeFi Swap is a decentralized exchange that is not bound or connected with any centralized third parties. This ethos sits at the core of the decentralized finance space.

And as such, you can use DeFi Swap services without needing to create an account. This also means that you are not required to provide any personal information or verification documents.

Earning via Crypto Yield Farms on DeFi Swap

What tokens can I farm on DeFi Swap?

DeFi Swap supports a wide variety of tokens that operate on the Binance Smart Chain. More tokens are being added frequently to meet user demand.

What yields can I earn when crypto farming on DeFi Swap?

Yields on DeFi Swap will vary depending on a variety of core variables. First, this will depend on the token that you wish to farm. Naturally, larger cap tokens that are prone to lower levels of volatility will often yield a lower APR. Similarly, newly launched tokens with a small market capitalization and low levels of liquidity will attract much higher APYs.

The next thing to consider is the length of time that you are happy to lock your tokens away. DeFi Swap utilizes four tiers – Bronze (30 days), Silver (90 days), Gold (180 days), and Platinum (365 days).

Ultimately, the longer that you lock your tokens away, the higher the APY you will generate.

Can I withdraw tokens once they are locked in a yield farming pool DeFi Swap?

On the one hand, crypto yield farming allows you to earn an attractive rate of interest in a passive manner. However, the key thing to remember is that once your tokens are locked in a pool, you won’t be able to withdraw the funds until the term concludes.

And as such, you should only choose a lock-up plan that is suitable for your financial profile. If you believe that you might need the tokens to cover short-term expenses, then crypto yield farming might not be for you.

Earning via Liquidity Pools on DeFi Swap

Why do I need to deposit two different tokens when providing liquidity?

Irrespective of the cryptocurrency that you are interested in buying or the exchange you are looking to use for this purpose, you will always access your desired market via a pair.

For example, if you wanted to buy Bitcoin with US dollars, you would be trading BTC/USD. Similarly, if you wanted to exchange BNB for GALA, you would be trading BNB/GALA.

And therefore, in order for there to be suitable liquidity levels to offer users a smooth and efficient trading market, there would need to be sufficient quantities of both tokens contained within the pair on DeFi Swap.

What is impairment loss?

One of the biggest risks that you need to consider when providing tokens for a liquidity pool is that of impairment loss.

In its most basic form, this refers to a loss that will occur if there is an unfavorable difference between the market value of the respective tokens if they were held in a private wallet compared to that of the liquidity pool you are supporting.

After all, when you provide liquidity for a pool, you need to take into account the value of both tokens at the time of the deposit against that of its current market price.

On the one hand, you will earn a share of collected trading fees when providing liquidity on the DeFi Swap platform. In an ideal world, the commissions that you earn will outweigh any impairment loss encountered.

However, this isn’t always the case. That is to say, there is every chance that your impairment loss will equate to a greater amount than any trading fees collected. If this happens and you withdraw your tokens out of the liquidity pool, you will likely be doing so at a loss.

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