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Trading Tokens on the AMM

Learn how to swap tokens using the Automated Market Maker (AMM) - a decentralized exchange built into Ethereal Offering.

🔄 What is an AMM?​

An Automated Market Maker is a decentralized exchange that uses liquidity pools instead of traditional order books.

Traditional Exchange:

  • Buyers and sellers place orders
  • Orders matched by exchange
  • Centralized (exchange controls funds)

AMM:

  • Liquidity pools hold token pairs
  • Smart contract calculates prices
  • Decentralized (you control funds)

Benefits:

  • No KYC (know our customer)
  • No account needed
  • Trade directly from wallet
  • 24/7 availability
  • Transparent pricing

💱 Available Trading Pairs​

Primary Pairs​

PairPurposeLiquidity
ETHO/PSDCeremonial token ↔ StablecoinHigh
PSILO/ETHCrowdsale token ↔ EthereumHigh
MDAO/PSDGovernance ↔ StablecoinMedium
DM/PSDDaily rewards ↔ StablecoinMedium
PSILO/ETHOCrowdsale ↔ CeremonialLow

Why These Pairs?​

ETHO/PSD:

  • Price ETHO in dollars
  • Stable trading
  • Main liquidity pool

PSILO/ETH:

  • Access Ethereum liquidity
  • Standard DeFi pair
  • Easy on/off ramp

MDAO/PSD:

  • Sell governance tokens
  • Stable pricing
  • Exit liquidity

DM/PSD:

  • Convert daily rewards
  • Cash out earnings
  • Stable value

📋 Prerequisites​

Before trading, ensure you have:

  • ✅ Wallet Connected - MetaMask or similar
  • ✅ Tokens to Swap - Source token in wallet
  • ✅ ETH for Gas - ~0.001-0.01 ETH for transaction fee
  • ✅ Understanding of Slippage - Price movement tolerance

🔄 Step-by-Step Trading Guide​

Step 1: Access the Swap Interface​

  1. Visit etherealoffering.org
  2. Click "Swap" in navigation
  3. Ensure wallet is connected
  4. You'll see the swap interface

Step 2: Select Tokens​

Choose what to swap:

  1. "From" Token - What you're selling
  2. "To" Token - What you're buying

Example:

  • From: ETHO
  • To: PSD

Click token selector to choose from available tokens.

Step 3: Enter Amount​

Two ways to enter:

Option A: Enter "From" amount

  • Type amount of token you're selling
  • "To" amount auto-calculates

Option B: Enter "To" amount

  • Type amount of token you want
  • "From" amount auto-calculates

Example:

  • From: 1,000 ETHO
  • To: 50 PSD (auto-calculated)
  • Rate: 1 ETHO = 0.05 PSD

Step 4: Review Swap Details​

Check the details:

Price Information:

  • Exchange Rate - How many tokens per token
  • Price Impact - How much our trade moves the price
  • Minimum Received - Worst case after slippage
  • Liquidity Provider Fee - 0.3% fee

Example:

Swap 1,000 ETHO for PSD

Exchange Rate: 1 ETHO = 0.05 PSD
You Pay: 1,000 ETHO
You Receive: ~50 PSD
Price Impact: 0.5%
Minimum Received: 49.5 PSD (1% slippage)
LP Fee: 3 ETHO (0.3%)

Step 5: Adjust Slippage (Optional)​

What is slippage?

  • Price can change between clicking "Swap" and transaction confirming
  • Slippage tolerance = how much price change you'll accept

Default: 1% (recommended)

Adjust if needed:

  • Low liquidity: Increase to 2-5%
  • High liquidity: Can use 0.5%
  • Urgent trade: Increase slippage
  • Patient trade: Decrease slippage

Click settings icon (⚙️) to adjust.

Step 6: Approve Token (First Time Only)​

First time swapping a token:

  1. Click "Approve ETHO" (or whatever token)
  2. MetaMask pops up
  3. Review approval (allows AMM to spend our tokens)
  4. Click "Confirm"
  5. Wait for confirmation (~15 seconds)

Note: Only needed once per token. Future swaps won't require approval.

Step 7: Execute Swap​

Now you're ready:

  1. Click "Swap"
  2. MetaMask pops up with transaction details
  3. Review:
    • Tokens being swapped
    • Amounts
    • Gas fee
    • Total cost
  4. Click "Confirm"
  5. Wait for transaction to complete (~15-30 seconds)

Step 8: Confirm Success​

After transaction confirms:

✅ Success Message - "Swap successful!"
✅ Tokens Received - Check our wallet balance
✅ Transaction Hash - View on Etherscan

Verify:

  • Old token balance decreased
  • New token balance increased
  • Transaction shows on Etherscan

💡 Trading Strategies​

Strategy 1: Dollar-Cost Averaging (DCA)​

Goal: Reduce volatility risk

Method:

  • Buy fixed dollar amount regularly
  • Weekly or monthly
  • Regardless of price

Example:

  • Buy $100 worth of PSILO every week
  • Week 1: PSILO = $0.10, buy 1,000 PSILO
  • Week 2: PSILO = $0.05, buy 2,000 PSILO
  • Week 3: PSILO = $0.15, buy 666 PSILO
  • Average price: $0.09

Benefits:

  • Reduces timing risk
  • Emotional discipline
  • Long-term accumulation

Strategy 2: Limit Orders (Manual)​

Goal: Buy/sell at specific price

Method:

  • Set target price
  • Check regularly
  • Execute when price hits target

Example:

  • Want to buy ETHO at $0.04
  • Current price: $0.05
  • Wait for price to drop
  • Execute swap when $0.04

Note: No automatic limit orders (yet). Must check manually.

Strategy 3: Arbitrage​

Goal: Profit from price differences

Method:

  • Find price difference between exchanges
  • Buy on cheaper exchange
  • Sell on expensive exchange
  • Profit the difference

Example:

  • ETHO on our AMM: $0.05
  • ETHO on Uniswap: $0.06
  • Buy 1,000 ETHO on our AMM ($50)
  • Sell 1,000 ETHO on Uniswap ($60)
  • Profit: $10 (minus gas fees)

Risks:

  • Gas fees can eat profits
  • Price can change quickly
  • Requires speed and capital

⚠️ Important Considerations​

Price Impact​

What is it?

  • How much our trade moves the price
  • Larger trades = higher impact
  • Smaller pools = higher impact

Example:

  • Pool: 10,000 ETHO / 500 PSD
  • You buy 1,000 ETHO (10% of pool)
  • Price impact: ~5%
  • You pay more than current price

How to reduce:

  • Trade smaller amounts
  • Split into multiple trades
  • Wait for more liquidity
  • Use larger pools

Slippage​

What is it?

  • Price change between signing and confirming
  • Network congestion can delay confirmation
  • Price can move during delay

Example:

  • You click "Swap" at 1 ETHO = 0.05 PSD
  • Transaction takes 30 seconds to confirm
  • Price moves to 1 ETHO = 0.049 PSD
  • You receive less than expected

Protection:

  • Set slippage tolerance (1% default)
  • If price moves more than tolerance, transaction reverts
  • You don't lose funds, just pay gas fee

Impermanent Loss (For LPs)​

What is it?

  • Loss experienced by liquidity providers
  • When token prices diverge
  • "Impermanent" because it can reverse

Example:

  • You provide 1,000 ETHO + 50 PSD
  • ETHO price doubles
  • Pool rebalances (you have less ETHO, more PSD)
  • we would have more if you just held

Note: This affects liquidity providers, not traders.

📊 Advanced Features​

Multi-Hop Swaps​

What is it?

  • Swap through multiple pools
  • Get better rates
  • Automatic routing

Example:

  • Want: DM → PSILO
  • No direct DM/PSILO pool
  • Route: DM → PSD → PSILO
  • AMM finds best path automatically

Benefits:

  • Access any token pair
  • Better prices
  • More flexibility

Gas Optimization​

Save on gas fees:

1. Trade During Low-Traffic Times

  • Weekends (lower fees)
  • Late night UTC (lower fees)
  • Avoid Monday mornings (high fees)

2. Batch Transactions

  • Approve + Swap in one session
  • Multiple swaps together
  • Reduces total gas

3. Use Gas Trackers

4. Adjust Gas Settings

  • Use "Standard" not "Fast"
  • Be patient (save 30-50%)
  • Only use "Fast" if urgent

🔗 Resources​

🙏 Tips for Success​

✅ Best Practices:

  • Start with small amounts
  • Understand price impact
  • Set reasonable slippage
  • Check gas fees before trading
  • Verify transaction on Etherscan
  • Keep records for taxes

❌ Avoid:

  • Trading more than we can afford to lose
  • Ignoring price impact
  • Setting slippage too high (front-running risk)
  • Trading during high gas fees
  • Emotional trading (FOMO, panic)
  • Not understanding what you're trading

Next: Providing Liquidity →

"Trade with intention, not emotion. Every swap is a choice, every choice is sacred." 🍄✨