How to Avoid the FraxSwap Trading Mistake That Costs Most
How to Avoid the FraxSwap Trading Mistake That Costs Most FraxSwap lets a trader spread a large Ethereum-token swap over time through its time-weighted AMM, avoiding the one-shot price impact that can make a valid trade unnecessarily expensive; it is an execution tool, not a promise of the best price. What does FraxSwap actually remove from a large trade? FraxSwap removes the need to force an entire large order through an automated market maker in one moment. That matters because a conventional AMM does not match a buyer with a seller at a fixed quoted price. It prices a trade against token reserves in a pool. The larger the trade is relative to available liquidity, the further it moves the pool price while it executes. Uniswap’s explanation of constant-product AMMs makes the trade-off plain: larger trades relative to pool depth create more price impact. Before time-weighted execution, a trader with a large position had awkward choices. They could accept poor execution in one s...