Fermi swap: How to choose a token trade route

For a fermi swap, choose the route that leaves you with the most tokens after fees and network costs, not simply the one with the shortest path. A route is the sequence of token exchanges used to get from the asset you hold to the one you want. It may trade directly between the two tokens or pass through another asset.

When you need to exchange tokens from your wallet, fermi swap is a decentralized swap for making that exchange directly from the wallet. Before confirming a trade, compare the amount you expect to receive with the costs and price movement along the route. The displayed rate alone does not tell you what the trade will cost overall.

Which route should you use in a fermi swap?

Use the route with the strongest expected result after costs, provided the tokens and network are the ones you intend to trade. A direct route exchanges one token for another through a single market. An indirect route trades through an intermediate token, such as a widely traded asset, to reach the destination.

A direct route has fewer steps, but that does not guarantee a better price. If its market has little liquidity—the tokens available for trading—a sizable order can move the price against you. A route through another asset may draw on deeper markets, though each extra exchange can add a fee and another source of price movement.

• Compare the expected amount received, not just the quoted exchange rate.
• Check whether the route is direct or uses one or more intermediate tokens.
• Include network costs, often called gas, in the total cost.
• For a large trade, compare its size with the liquidity available along the route.

When is a direct route better?

A direct route is often preferable when its market has enough liquidity and its final amount is at least as good after costs. Fewer exchanges usually mean fewer fees to account for and fewer points where the price can change before the transaction completes. That makes a direct route easier to assess, especially for a modest trade.

But route length is only a guide. A thin direct market may give a worse result than two deeper markets linked by an intermediate asset. For a fermi swap, compare the quoted output for the same input amount and destination token. If the interface offers more than one route, look at the expected output and any listed costs rather than assuming that “direct” means “cheapest.”

What should you check before confirming a token swap?

Check the token, network and amount first, then review the minimum output and price impact. Price impact is the change in the market price caused by your own trade. Slippage is the difference between the quoted result and the result when the trade executes; it can grow while a transaction is waiting to be confirmed.

Set a slippage limit only as wide as needed for the trade to proceed. A very loose limit can allow a worse execution than you expect, while a tight one may cause the transaction to fail if the market moves. Also confirm that the token address is correct, particularly for less familiar tokens, and keep enough of the network’s native token to cover gas. The practical rule is simple: choose the route with the clearest, strongest net result, then confirm that its execution limits fit the trade you intend to make.