How WeSwap works?
11 min
overview weswap is a next generation decentralized exchange aggregator that delivers optimal trade execution by pulling liquidity from leading ethereum based dexs such as uniswap, curve, and balancer designed for both simplicity and performance, weswap routes each trade through the most cost effective path while abstracting complexity away from the user rather than functioning as a standalone amm (automated market maker), weswap acts as an intelligent liquidity router , ensuring users always receive the best possible rate across the fragmented dex landscape core aggregation technology 🔄 smart liquidity routing at the heart of weswap lies a smart routing engine that evaluates thousands of on chain liquidity paths in real time it assesses price slippage across different pools gas cost vs execution efficiency liquidity depth on each route token compatibility and wrap/unwrap mechanics (e g , weth vs eth) the system automatically splits large orders across multiple dexs if needed to minimize slippage and maximize value for example, a single swap could route 40% through uniswap v3, 35% through curve, and 25% through balancer — all under the hood 💡 backend optimization weswap's smart contract architecture includes dynamic fee routing contracts that adjust based on market volatility fallback logic to reroute failed or stuck trades flashbots integration (planned) to prevent mev front running eip 3074 (pectra ready) compatibility for reduced gas overhead and flexible signing ethereum powered ux enhancements ⚙️ pectra upgrade compatibility thanks to ethereum’s upcoming pectra upgrade, weswap supports erc 4337 and account abstraction standards that allow for gasless transactions (sponsored via relayers or abstract accounts) paying gas fees in any token being swapped (e g , using usdc to cover gas when swapping usdc → eth) bundled transaction flows , letting users batch token approvals + swaps in a single click this significantly enhances usability, particularly for new users or mobile first traders who frequently encounter difficulties with gas payments in eth fee structure & revenue distribution 💰 transparent 1% platform fee each trade executed on weswap incurs an approximate 1% total fee , divided as follows fee allocation recipient up to 0 3% liquidity providers on source dexs (e g , uniswap, curve) up to 0 7% weswap platform revenue the 0 7% platform fee is collected in one of the tokens involved in the swap and split between the weswap team and $we token stakers this ensures that the protocol has a sustainable funding model community members who stake $we earn direct revenue , not just speculative rewards fee collection and distribution are fully on chain , handled by dedicated contracts that accumulate and distribute yield at regular intervals revenue sharing mechanism real time fee capture the 0 7% platform fee is collected in real time during each swap execution fee storage & aggregation fees are stored in a smart contract and grouped based on token types and origin pools conversion to $we (optional) in future upgrades, weswap may introduce an automated conversion layer to swap collected tokens into $we or eth for easier distribution staker distribution at scheduled intervals (e g , daily), collected fees are distributed to $we stakers proportionally to their stake stakers with longer lock periods receive multiplier bonuses, boosting their share of the rewards pool liquidity provision model 🧠 aggregator advantage (no lp risk) weswap does not require its own liquidity pools, reducing the risks associated with traditional amm models (like impermanent loss) instead, it leverages existing pools on uniswap v2 & v3 curve pools (stables & meta pools) balancer weighted pools other top dexs via plugins this model avoids liquidity fragmentation and provides instant access to billions in on chain liquidity user experience design 🧭 interface simplicity the weswap interface is built to be user friendly yet powerful clean swap ui with estimated slippage and route previews option to toggle between simple and advanced modes cross token gas fee support (thanks to erc 4337) portfolio overview with earned rewards tracking for $we stakers full mobile compatibility with walletconnect, rainbow, metamask mobile, and others security architecture weswap prioritizes user safety with a multi layered security strategy formal audits by top ethereum security firms (ongoing) modular smart contracts with upgradeable architecture emergency pause functionality to mitigate systemic threats integration of mev resistant trade submission via flashbots (upcoming) comparison with traditional dexs feature weswap traditional dexs best price execution aggregated routing single pool pricing revenue sharing yes, to $we stakers often none or only lps benefit gas payment flexibility pay in any token (via pectra) eth only liquidity model aggregated across dexs platform native pools only community incentives direct yield via staking indirect, speculative only the future of trading on ethereum weswap is not just a dex—it’s a modular, ethereum native liquidity platform that transforms how users interact with on chain assets with upcoming integrations including layer 2 routing (arbitrum, optimism) cross chain aggregators (via wormhole or axelar) $we based governance over routing policies mev protection and private order flow weswap aims to become the most capital efficient, user friendly , and community aligned dex aggregator in the ethereum ecosystem trade smarter earn passively power the future of defi with $we