So, you're ready to dive into the deep waters of DeFi, swapping wKAS or providing wKAS liquidity on Uniswap and raking in some sweet swap fees. Or perhaps you're just a glutton for punishment who loves to feel the burn of ETH gas fees. Whatever floats your boat, mate. By overwhelming demand, I present the long-awaited Uniswap guide on how to swap and provide liquidity with your wKAS.

This guide finds its home on parameterless primarily because Uniswap is a DeFi platform native to the Ethereum network and not to Kaspa. Thus, while our hearts may beat for Kaspa, we're setting sail to the Ethereum network in this guide to help you navigate these unique waters with your wKAS.

Disclaimer: Due to the gas fees of the Ethereum network, I repurposed the images below to frame the main idea and what you’ll encounter in this process. These are not necessarily the numbers, assets, and fees you’ll see in your actions.

This compass will assume that you already have wKAS in hand; if you still need to bridge KAS to wKAS, please start here. There are a few browser wallets that you can use that work seamlessly with Uniswap. All vary in function slightly but should operate similarly. In this guide, we'll be using MetaMask.

It is recommended to have equal values of wKAS to ETH to learn about providing liquidity to a pool. At the time of writing, 0.1 ETH = 7,732 wKAS. You'll also need to budget extra for ETH gas. Maybe(?) 0.1 ETH to be safe.

There is a risk for impermanent loss when providing liquidity. To understand what impermanent loss is, this YouTuber does an excellent job here.

Time to strap on your scuba gear and take the plunge.

Swapping wKAS

Set Sail for Uniswap

Make sure your MetaMask is up and running with enough ETH for transaction fees, and you have your wKAS tokens ready for action. Open your web browser and navigate to the Uniswap interface. Click on "Connect" Select MetaMask and follow the prompts to connect it.

Dive Under the Surface

In the swap section, choose wKAS from the dropdown menu as the token you want to swap. Remember that the top asset is to be exchanged for the bottom asset. You can click the down arrow to switch the assets. If it's playing hard-to-get, paste its contract address into the search bar.

If you already have wKAS in your wallet, it should show as above. I have 1000 wKAS.

If it's playing hard-to-get, paste its contract address into the search bar.

Measure Your Depth

Input the amount of wKAS you want to swap. You'll see the equivalent amount of ETH you'll receive. This isn't smooth sailing; it might change slightly due to the ever-shifting currents of the market.

Check Your Equipment

Review the swap details, including the minimum received, price impact, and liquidity provider fee. If it all checks out, hit "Confirm Swap."

Surface for Air

A MetaMask notification will pop up for you to confirm the transaction and the… gas fee…. Give it a nod if it checks out and click "Confirm."

Float and Wait

Now, just like waiting for the tide to come in, you'll need a bit of patience as the transaction gets processed. You'll be notified when it's complete.

Providing liquidity for wKAS

Return to the Dock

Now that you're a pro with the swap, it's time to contribute to the liquidity pool. Navigate to the "Pools" tab on Uniswap.

Click "+ New Position"

Prepare Your Gear

Click "Select a token" and select KAS. This will create a KAS/ETH pair. You can change this pair to anything you wish if you have the assets, such as KAS/USDT.

Dive Deeper

The "fee tier" can be changed; however, 0.3% is generally used for common pairs. If a "fee tier" needs to be selected here, I recommend 0.3% for the best chance of swapping fees.

Think of the slider as your depth gauge, telling you exactly how deep your liquidity will be active in the ocean of market prices. You set the price range within which your liquidity will be used. If the price of wKAS in ETH falls within this range, your liquidity will be used, and you'll earn fees. Your liquidity will be idle if it's outside this range, just bobbing in the water.

Input the amount of wKAS you want to contribute. Uniswap will automatically calculate the equivalent ETH you must provide based on the current pool ratio. Set your desired price range using the sliders. Remember, the tighter the range, the more potential fees and the higher the risk of the price moving out of your range. I clicked "MAX" on KAS, and Uniswap automatically matched the ETH amount.

The sliders can seem daunting, but they're straightforward once you gain an understanding of what they represent and how they work. More information can be found here.

Double-check Your Equipment

Review the details of the liquidity provision. If all looks good, click on "Add."

Dive In

A familiar MetaMask notification will show up, asking for your confirmation. Once you've confirmed, click " Confirm " to confirm the transaction.

Drift and Wait, Again.

Just like after a good dive, it's time to rest and wait as the transaction gets processed. You'll be notified when it's done.

Loot

Alright, shipmate, now that you've braved the depths and joined the ranks of liquidity providers, there's more to explore in this DeFi ocean.

Monitoring Your Pool Position: In the vast ocean, losing track of your bearings is easy. Luckily, Uniswap V3 has a nifty feature to monitor your pool position. Just navigate to the "Pools" tab, and you'll see your positions listed there. Each position will show you the tokens you've staked, the price range you've set, your share of the pool, and the fees you've earned. It's like having your very own treasure map!

Deep Dive into Providing Liquidity: There's always more to learn when sailing the DeFi seas. On the Uniswap interface, there's a handy "Learn" tab. Clicking on this will give you a wealth of information about providing liquidity, helping you navigate the waves more smoothly.

Exploring Top Pools: Curious about where other sailors are casting their nets? Select "Top Pools" to see which liquidity pools are the most popular based on total liquidity. It's like seeing where the other ships are sailing - it can give you an idea of where the fish are biting!

So, there you have it, brave sailor. Your compass is pointing in the right direction, your scuba gear is on, and the ocean depths are yours to explore. Remember, the sea can be unpredictable, so always keep an eye on the horizon (or, in this case, your pool positions). May your trades always be favorable, your gas fees bearable, and your DeFi adventures be nothing short of spectacular. Now go forth, the DeFi ocean awaits! Isn't that a swell dive?

Other ETH DEX options to explore: Curve, Balancer, DODO, and Sushi.

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