As decentralized finance (DeFi) continues to grow, platforms like Fraxswap are pushing the boundaries of what automated market makers (AMMs) can achieve. Developed by the Frax Finance team, Fraxswap is not just another DEX — it's the first AMM purpose-built to execute monetary policy for stablecoin ecosystems.
In this guide, we'll dive into Fraxswap’s key features, explain how to use the platform step by step, and highlight why it's a unique addition to the DeFi landscape.
Fraxswap is an AMM that supports not only token swaps but also long-term, strategic trading through the Time-Weighted Average Market Maker (TWAMM) mechanism.
Originally forked from Uniswap V2, Fraxswap expands its capabilities with:
TWAMM Orders – For splitting large trades over time.
Liquidity Pools – To earn fees and support the Frax ecosystem.
Policy Execution Tools – To help DAOs and protocols perform market operations automatically.
Fraxswap is deeply integrated into the Frax stablecoin system, making it a powerful tool for both users and DeFi institutions.
Users can exchange one ERC-20 token for another instantly with low fees and slippage. Common pairs include:
FRAX ↔️ FXS
FRAX ↔️ USDC
FXS ↔️ WETH
TWAMM allows users to break down large trades into smaller ones and execute them over time. This helps reduce price impact and makes Fraxswap ideal for DAOs or long-term strategies.
Example: If a DAO wants to sell $1M in FXS, it can use TWAMM to do this gradually without causing a price dump.
Users can add liquidity to any supported pool and earn a share of the trading fees. Pools generally require a 50/50 split of each token.
There are no sign-ups or KYC. All interactions are handled on-chain through smart contracts.
Fraxswap is the best venue for interacting with the core Frax assets (FRAX, FXS, FPIS, etc.) due to deeper liquidity and tight protocol integration.
Go to Fraxswap and click “Launch App.” Connect your Web3 wallet (e.g., MetaMask, WalletConnect).
Select the tokens you want to swap from the drop-down menu. Input the amount you want to trade.
Customize slippage tolerance and transaction deadline in the settings menu if needed.
Before swapping a token for the first time, you’ll need to approve it. Confirm this in your wallet.
Click “Swap,” confirm the transaction, and wait for it to process. Your tokens will appear in your wallet once complete.
To use TWAMM:
Select “Long-Term Swap” mode on the platform.
Choose your token pair and the amount.
Set the duration over which you want the trade to execute.
Confirm the transaction and track its progress.
This is ideal for treasury managers, whales, or DAOs looking to offload or accumulate assets without influencing price significantly.
Navigate to the “Liquidity” tab.
Select a pool (e.g., FRAX/USDC).
Input equal values of both tokens.
Approve tokens and supply liquidity.
You’ll receive LP tokens, which can later be staked or redeemed.
Ideal for large, strategic trades via TWAMM.
🔒 Fully decentralized and non-custodial.
⚙ Deep integration with Frax protocol and stablecoins.
Transparent and open-source on GitHub.
What tokens can I trade on Fraxswap?
Primarily Frax ecosystem tokens like FRAX, FXS, FPIS, and stablecoins like USDC.
What is TWAMM used for?
TWAMM is used to spread large trades over time, reducing slippage and market impact.
Can I earn fees on Fraxswap?
Yes. By adding liquidity, you earn a percentage of the trading fees from that pool.
Is Fraxswap safe?
Fraxswap is open-source and has been audited. However, as with all DeFi platforms, users should assess risks before using it.
Where can I learn more about AMMs?
Check out this detailed article on Binance Academy.
Fraxswap stands out as more than just a DEX. It’s a monetary policy engine, a strategic liquidity platform, and a power user tool all in one. Whether you're trading FRAX, providing liquidity, or executing a treasury strategy, Fraxswap offers the tools you need.
Explore Fraxswap today and take control of your decentralized trading strategy.
📌 Fraxswap CoinMarketCap: https://coinmarketcap.com/community/profile/FraxSwapDEX/
📂 Fraxswap Twitter : https://x.com/Frax_Swap
📚 Learn DeFi Basics: Binance Academy
