Osmosis — How to swap tokens on Osmosis?

How to perform a swap on Osmosis, to buy some OSMO using ATOM?

Disclaimer: The information contained in this article and the resources available do not constitute financial advice and should not be construed as such.

What is Osmosis?

Osmosis is a decentralized exchange (DEX) built on the Cosmos ecosystem, designed to facilitate seamless trading of tokens across various blockchains.

Leveraging the Inter-Blockchain Communication (IBC) protocol, Osmosis allows users to trade, provide liquidity, and participate in governance with assets from different blockchain networks in a highly secure and efficient manner.

Here are some key features that define Osmosis:

1. Interoperability: Utilizing the IBC protocol, Osmosis enables interoperability between multiple blockchains, allowing for cross-chain transactions and the trading of a diverse range of tokens.
2. Liquidity Pools: Users can provide liquidity to various pools on Osmosis, earning rewards in return. This incentivizes users to contribute to the liquidity and stability of the market.
3. Customizable Liquidity Pools: Unlike traditional DEXs, Osmosis allows for customizable liquidity pools where users can set parameters such as swap fees and weights of the assets in the pool. This flexibility encourages the creation of tailored pools to meet specific trading needs.
4. Governance: Osmosis is governed by its community through a decentralized autonomous organization (DAO). Token holders can propose and vote on changes, ensuring that the platform evolves according to the collective will of its users.
5. Incentives and Rewards: Osmosis offers various incentives to encourage participation, including staking rewards, liquidity mining, and governance rewards. These incentives help maintain an active and engaged user base.
6. Security: Built on the robust Cosmos SDK, Osmosis benefits from the security and stability of the Cosmos network. The platform also implements rigorous security measures to protect user funds and ensure safe transactions.

Overall, Osmosis is a pioneering platform in the DeFi space, providing a user-friendly and efficient environment for cross-chain token swaps and liquidity provision. By fostering a collaborative and innovative community, Osmosis continues to drive the growth and adoption of decentralized finance.

How to swap my token on Osmosis?

In this guide, we will demonstrate how to swap ATOM tokens for OSMO tokens on Osmosis, but the same process applies to the hundreds of other tokens available on the platform. Let’s walk through the process step by step.

Step 1: Connect your Keplr wallet

Keplr is a browser extension wallet that allows you to interact with the Cosmos ecosystem and Osmosis.

1. If you don’t have a Keplr Wallet, you can download it from the Google Chrome store.
2. Create a new Wallet, or import an existing one using its mnemonic. You can follow our complete guide.
3. Open app.osmosis.zone in your browser and connect your wallet by clicking on the “Connect” button at the top right corner of the Osmosis interface.

Connect you wallet, top right of the page

4. Choose Keplr from the list of supported wallets. Keplr will prompt you to approve the connection. Confirm the connection to allow Osmosis to interact with your wallet.

Choose Keplr

Step 2: Deposit your ATOM on Osmosis

To swap ATOM for OSMO, you first need to deposit ATOM into the Osmosis platform:

1. On the Osmosis interface, navigate to the “Portfolio” section.
2. Find ATOM in the list of supported assets and click on the “Deposit” link.

Click on “Deposit”, on the line of the chosen asset

3. Choose the amount you want to deposit, and click on the “Deposit ATOM” button. Confirm the transaction to transfer ATOM from your Keplr wallet to Osmosis.

Choose the amount of ATOM you want to deposit, and click on “Deposit ATOM”

4. The transfer might take a few seconds to complete. Once completed, your tokens appear in your Portfolio.

We have successfully deposited 1 ATOM

Step 3: Swap

Now that your ATOM is deposited on Osmosis, you can proceed with the swap:

1. On the Osmosis interface, navigate to the “Swap” section.
2. Select the token you want to sell in the “from” field (in our case, “ATOM”), and the token you want to buy in the “to” field (in our case, “OSMO”).
3. Specify the amount of ATOM you want to swap. The interface will show you the equivalent amount of OSMO you will receive.

Choose your tokens, and the amount you want to swap

4. Double-check the swap details, including the exchange rate and any fees.

5. Confirm the swap by clicking on the “Swap” button. Confirm the transaction with Keplr.

Congratulations, you have successfully swapped ATOM for OSMO! Once the transaction is confirmed, your OSMO will appear in the “Portfolio” section.