FAQ

General

What is GnoSwap?

GnoSwap is the first decentralized exchange (DEX) built on Gnoland using Gnolang. More specifically, GnoSwap is an automated market maker (AMM) protocol with concentrated liquidity, which enables higher capital efficiency for liquidity providers and unparalleled depths of liquidity for traders.

What types of tokens are supported on GnoSwap?

Upon launch, GnoSwap will support Gnoland-native tokens and GRC-20s. In the future, all assets from external chains transferred to Gnoland via IBC will be supported on GnoSwap. This is made possible thanks to the interoperable nature of Gnoland.

What are $GNS tokens?

$GNS is the native token of the GnoSwap protocol, which exists to drive its ecosystem and encourage sustainable liquidity. $GNS tokens can be staked to earn xGNS, which represents the voting power on the GnoSwap governance. xGNS tokens receive a portion of all protocol fees generated on GnoSwap.

What is Wrapped GNOT?

Wrapped GNOT ($wugnot) is the canonical GRC-20 representation of the $GNOT token. GnoSwap's liquidity pools are designed to hold GRC-20 tokens, meaning that native tokens such as $GNOT must be wrapped into GRC-20 tokens for users to provide liquidity or trade. For the convenience of users, GnoSwap abstracts away this process by including it in all in-app transactions.

How do I check my transaction history on GnoSwap?

Once you connect your wallet, click on the notification icon next to your account address. A full list of your interactions with GnoSwap will appear. For transactions made outside of Gnoscan, please visit your account details page on Gnoscan.

How do I display my token on GnoSwap?

Information that need to be found off-chain such as its logo, description, website, and social profiles are sourced from gno-token-resource, a community-maintained list of tokens on Gnoland.

How do I report a bug?

If you've found a bug, please email us at [email protected] or create an issue on our official Github Repository. We will investigate your issue as soon as possible.

How does the withdraw feature work?

GnoSwap allows you to withdraw tokens from your connected wallet directly from the interface. It is important to understand that this results in an on-chain transaction, meaning that it's irreversible and costs network fees in $GNOT. GnoSwap CANNOT recover your funds once it is sent. Also note that centralized exchanges or wallets may require a memo.

In the future, IBC transfers will be supported to allow cross-chain withdrawals.

How do I deposit tokens into my wallet?

The GnoSwap interface allows you to view the address of your connected wallet in plain text or in QR code. Send any GRC-20 tokens or gno.land native tokens to this address to receive them.

It is very important to understand that you may only send tokens on the gno.land network. Sending tokens from any other networks may result in loss of funds.

Trading

How do Automated Market Makers work?

Automated Market Makers (AMMs) utilize a mathematical equation to calculate the exchange rate (or price) of assets in a pool relative to their quantities. As trades occur, the token amounts in the pool shift, causing a change in the price.

For more information about AMMs, please refer to this section.

What does slippage mean?

Trades on GnoSwap are executed on-chain, meaning that it takes a few seconds for the Gnoland blockchain to process your trade after you submit your transaction. The exchange rate you see on the GnoSwap web application may differ from the actual rate you get when your transaction is processed. This phenomenon is known as slippage. You can prevent this by manually setting your slippage tolerance.

What is the Auto Router and how does it work?

The Auto Router simulates all available pools on GnoSwap to find the optimal route of the trade that returns the most amount of tokens for your trade. The less liquidity a pair has, the more likely that you'll see your trade getting split across multiple pools.

Why does my transaction keep failing?

The most common case of a swap transaction failure happens due to the slippage limit being reached. You may run into these issues when trading during a volatile market, or trying to swap a large amount of tokens in an illiquid pool. Try to increase your slippage limit using the Settings icon and try again. If this issue continues, please ask for support in the GnoSwap Discord.

How are USD prices displayed on GnoSwap?

GnoSwap leverages the Volume-Weighted Average Price (VWAP) algorithm to provide accurate and temper-proof prices of tokens. The VWAP is calculated as the sum of the product of price and volume for each trade within the specified time frame, divided by the total volume. To further prevent price manipulations, GnoSwap only accounts for trades against reputable, verified assets with sufficient market liquidity.

For more information about GnoSwap's VWAP, please refer to this section.

Concentrated LP

How does concentrated liquidity work?

Concentrated liquidity is a mechanism that enables liquidity providers to select a specific price range in which their deposits become available for trading. Rational LPs are expected to select a price range where trading is most active to maximize the fees they receive as rewards.

For more information about concentrated liquidity, please refer to this section.

What are positions?

Positions are representations of your liquidity, minted in GRC-721 NFTs. Each position contains unique information such as the price range you've selected and the units of its underlying liquidity which are used to calculate how much tokens and fees the pool owes you.

It is very important to keep your position NFT safe, as it is the only way to retrieve your tokens once you wish to withdraw them from the liquidity pool.

How are preset price ranges configured?

GnoSwap offers 2 preset price ranges for inexperienced liquidity providers.

Active: An aggressive price range for higher risks & returns.

• 0.01% Fee Tier Pools: [-0.5% ~ +0.5%]

• 0.05%, 0.3%, 1% Fee Tier Pools: [-10% ~ +10%]

Passive: A passive price range for moderate risks & returns.

• 0.01% Fee Tier Pools: [-1% ~ +1%]

• 0.05%, 0.3%, 1% Fee Tier Pools: [-50% ~ +100%]

Although thinner price ranges will result in higher rewards thanks to increased capital efficiency via liquidity concentration, they will require more frequent rebalancing, as out-of-range positions will not accrue any rewards.

What happens to out-of-range positions?

Once the current price of the pool crosses beyond the price range of your position, it means that one side of your liquidity has been completely used up. Your position will only be composed of a single token and will not accrue any rewards. Once this happens, you can either wait for the price to return to your range, or manually rebalance it by using GnoSwap's Reposition feature.

Earning Rewards

Where do rewards come from?

There are three sources of rewards for liquidity providers:

1. Trading Fee Rewards: Traders who swap tokens from pools pay a portion of their trades as a fee. These fees are collected by each pool and distributed to liquidity providers pro-rata to their liquidity shares.

2. Liquidity Mining Rewards: Gnoswap distributes $GNS rewards to liquidity mining pools to incentivize long-term liquidity provision.

3. External Rewards: Gnoswap enables anyone to add rewards to the liquidity mining pools to bootstrap initial liquidity for nascent pools.

Are there any risks to providing liquidity on pools?

Liquidity providers may encounter a phenomenon known as impermanent loss (IL), which is a decrease in the net worth of a position compared to the initial deposit. The AMM is designed to keep the value of both tokens in a pool proportional to the market price. However, if one token's price changes, the pool may have more of that token, which has decreased in value, and less of the other token, which has increased in value. Trading fees and liquidity mining rewards exist to offset these ILs.

Why are there various fee tiers available on GnoSwap?

Most traditional AMMs with evenly distributed liquidity only supported a single fee type, as having multiple pools for a single pair led to severe liquidity fragmentation, resulting in high slippage and price impacts. The concentrated liquidity mechanism paired with the auto-router contract negates these issues, which enables GnoSwap to offer flexibility and customizability with fee tiers to the market. For example, liquidity providers of highly volatile pairs will likely choose higher fee tiers to compensate for the high IL, while those of stable pairs will choose a lower fee tier to compete with other liquidity sources for trading volume while being relatively free from IL.

How are APRs calculated?

Fee APRs are calculated based on the trading fees generated in the pool during the last 24 hours. Staking APRs are calculated based on the per-block rewards distributed to the pool.

How are incentivized pools selected?

Initially, pools that are subject to $GNS rewards and their multipliers are initially carefully selected by the GnoSwap Team. Once the GnoSwap Governance goes live, the responsibilities will be handed over to xGNS holders to decide which pools are worth incentivizing.

Governance

What is GnoSwap Governance?

GnoSwap Governance allows xGNS holders to create and vote on proposals that directly effect the GnoSwap protocol, including its policies, parameters, and community pool spendings. This allows GnoSwap to be fully decentralized and truly owned by the community.

For more information about Governance, please refer to this section.

What is xGNS?

xGNS is a non-transferrable token obtained by delegating $GNS tokens via GnoSwap Governance. The user receives 1 xGNS per 1 $GNS delegated. xGNS grants you voting rights within the GnoSwap Governance, and allows you to earn a portion of protocol fees generated on GnoSwap.

For more information about xGNS, please refer to this section.

What are delegates?

Delegates are representatives of GnoSwap Governance who inherit the voting power of xGNS holders who delegate their tokens to them. The delegate you choose can ONLY vote on your behalf. Rest assured, they CANNOT sell or undelegate your tokens.

What are quorums?

A quorum is the minimum number of votes that a proposal must reach in order for it to be considered valid. For example, assuming a quorum of 50,000,000 xGNS, a proposal with a total vote of 35,000,000 xGNS will be considered invalid and rejected even if 50% or more of the voting power has voted Yes.

How are the results of proposals decided?

The result of the proposals at any given time can be classified into one of the following:

• Upcoming: The proposal has been uploaded, but the voting period has not yet begun.

• Active: The proposal is available for voting.

• Passed: The proposal has reached the quorum and 50% or more voters have voted Yes.

• Rejected: The proposal has failed to reached the quorum or less than 50% of voters have voted Yes.

• Cancelled: The creator of the proposal has cancelled the proposal.

Launchpad

What is GnoSwap Launchpad?

GnoSwap Launchpad is a user-friendly token launch platform designed for "lossless" exposure to early-stage projects. GnoSwap Launchpad allows users to acquire project tokens by depositing $GNS into Launchpad Pools for a fixed duration, without requiring any kind of payments. The term "lossless" is achieved as the initial amount of $GNS deposited is entirely returned to the user upon the maturity of the pool.

For more information about Launchpad, please refer to this section.

How do I withdraw my $GNS from Launchpad Pools?

Your $GNS are locked while the Launchpad is active. You may only withdraw your $GNS deposits after the completion of the reward distribution period for each pool. The exact date and time from which the withdrawals are enabled can be found by selecting the pool and checking its End Date.

How do projects benefit from this?

All $GNS deposited inside the Launchpad Pools are automatically staked to the xGNS contract to earn protocol fees. This fee is redirected to the project team while the Launchpad is active to provide them with a stable source of funding throughout the launch. This mechanism referred to as "yield redirection".

Social Login

How does the Social Login feature work?

Social Login is a feature which allows you to conveniently sign into GnoSwap using your social accounts such as Google or X (Twitter), without installing a third-party wallet. This feature leverages multi-party computation (MPC), a cryptographically secure technology that splits your keys into multiple shares, which are ONLY retrievable with your social account, making it non-custodial.

Before using this method, be sure to check out this section and understand the underlying risks.

This service is provided through integration with Web3Auth, a key management infrastructure provider.

How do I export my Social Login account to other wallets?

To export your account, download Adena Wallet and sign in using the same email you've used to create your Social Login account on GnoSwap.

This will allow you to leverage the full functionalities of crypto wallets including exporting your keys, changing your network, and connecting with other dApps.

For more information about Social Logins, please refer to this section.