BabyDogeSwap also provides the opportunity to trade in V3 liquidity pools, which utilizes new V3 AMM model that offers concentrated liquidity to provide deeper liquidity for traders with the same amount of capital, offering lower slippage and more flexible trading fee tiers. Our Smart Router finds the best price for you using other exchanges V3 liquidity if its not available on BabyDogeSwap. You can enable/disable V3 swaps using the instructions below:
Since V3 trade is being facilitated through another exchange's liquidity, such as PancakeSwap, a portion of this swap will be burned, contributing to the traded token's deflationary rate and ecosystem. Lets take a look at the fees:
0.25% overall fee
If tokens IN and OUT are both whitelisted, 0.25% of amount IN is collected
In other cases, there are variants with 0.125% of tokenIN and 0.125% tokenOUT collected/burned depending on whitelist
Also V3 swaps introduces Split routing, which enables token swaps to be broken into multiple routes to achieve the best deal. Turning it off will restrict trades from being executed with a single route, which may result in low efficiency or higher slippage.
In example above we are trading some amount of BUSD -> BNB.
50% of amount traded through BUSD/USDT with 0.01% fee and, via Multihop, USDT/BNB with 0.05% fee.
25% traded through BUSD/BNB with 0.25% fee.
And another 25% through BUSD/BNB with 1% fee.
Split routing helps achieve more consistent token prices, lowering price impact on applicable swaps. This is possible by splitting a single swap across multiple routes. This works in tandem with multi-hops.
You can enable/disable Split routing feature using this instruction:
