🔄 What is Token Swap?
Token Swap means exchanging one cryptocurrency for another, either on the same blockchain or across different blockchains.
🔹 Types of swaps:
🔁 On the same network: like swapping USDT to USDC on the Ethereum network.
🌉 Across different networks (Cross-chain): like swapping BNB from the BSC network to ETH on the Ethereum network via a bridge.
🔸 Where is the swap done?
On decentralized exchanges (DEX) like Uniswap and PancakeSwap.
Or via decentralized bridges like Multichain or Wormhole.
🔹 Why is it used?
To take advantage of profit opportunities between networks.
Or to use the currency in a specific protocol.
⚠️ Important note:
Be careful when using bridges, as they are among the most vulnerable places to hacking.
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📌 Understanding Token Swap is essential for any trader or investor in DeFi.
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