Swap

MONDA Swaps: Fast, Efficient, and Built for Liquidity

Swaps are the core function of any decentralized exchange, and MONDA is built to provide seamless, low-cost, and deep liquidity swaps within the Monad ecosystem. Whether you’re trading stablecoins, blue-chip tokens, or high-volatility assets, MONDA ensures that every swap executes efficiently while keeping price impact and slippage under control.

Unlike traditional order book-based markets, MONDA operates on a concentrated liquidity model, meaning trades are executed against liquidity pools rather than matching individual buy/sell orders. This allows for instant execution while liquidity providers (LPs) earn a portion of the swap fees based on their active positions.

How MONDA Swaps Work

Swapping on MONDA is simple:

1️⃣ Trade one asset for another – Users exchange tokens at a real-time market rate, determined by available liquidity in the pool.

2️⃣ Liquidity providers earn fees – A small swap fee is deducted from each trade and distributed to LPs who have active liquidity in the corresponding price range.

3️⃣ Efficient execution – Unlike order book markets, MONDA ensures trades are completed without waiting for counterparty orders, making swaps instant and permissionless.

By leveraging Monad’s high-speed, low-cost blockchain, MONDA provides one of the most efficient swapping experiences available on-chain.

Price Impact: Trading with Deep Liquidity

In centralized exchanges (CEXs) or order book markets, price impact depends on the size of open limit orders at different price levels. The final execution price is usually the weighted average of multiple limit orders.

In MONDA’s concentrated liquidity model, price impact is determined by the real-time liquidity depth at a specific price range:

🔹 Deeper liquidity at a price level = Lower price impact

🔹 Less liquidity at a price level = Higher price impact

Since LPs can concentrate their liquidity at strategic price points, MONDA minimizes price impact for most swaps, ensuring more stable pricing and efficient trades.

Slippage: Protecting Your Trades

Slippage refers to the potential price change between when a trade is submitted and when it’s executed. Due to the dynamic nature of liquidity pools, prices can shift slightly between the time of initiation and confirmation.

To manage this, MONDA allows users to set slippage tolerance, which determines the maximum price deviation they’re willing to accept.

🔹 Higher slippage tolerance – Ensures faster execution but may lead to slightly worse pricing.

🔹 Lower slippage tolerance – Provides better price control, but the transaction may fail if the market moves too quickly.

If the final execution price exceeds the user’s set slippage tolerance, the trade will fail automatically, protecting traders from excessive price deviations.

With deep liquidity, real-time pricing, and flexible slippage controls, MONDA delivers one of the best swapping experiences in DeFi—fast, cost-effective, and optimized for traders and liquidity providers alike. 🚀