If you are choosing where to trade or provide liquidity on zkSync Era, SyncSwap is an AMM DEX that prices swaps from onchain pools and gives depositors a share of reserves and trading fees. On zkSync Era, SyncSwap lets you execute that swap or supply assets to classic and stable pools.
How Does a Swap Get Its Price?
A swap’s output depends on the pool’s reserves, pricing curve and trading fee at execution. In a classic pool, the reserves follow x × y = k: buying one asset reduces its reserve and raises its price relative to the other. The larger your order is relative to the reserves, the further the execution price moves from the price you saw before trading.
For example, suppose a classic pool holds 100 ETH and 300,000 USDC, implying a starting price of 3,000 USDC per ETH. Selling 1 ETH into it returns about 2,967 USDC if the pool charges an illustrative 0.1% fee. The roughly 1.1% gap from the starting price combines the fee and the price impact of moving the reserves; it is not a separate charge.
SyncSwap on zkSync Era can route a trade through more than one pool, hop through an intermediate token, or split an order across paths when that improves the quote. Each hop has its own fee and reserve impact, so the shortest route need not deliver the most output. Compare the final amount received and the route behind it, especially for a thinly traded pair.
Which Pool Model Fits the Pair?
A classic pool fits assets whose relative price can move substantially; a Stable Pool fits assets expected to trade near a fixed ratio. Classic pools spread liquidity across the full price curve. Stable pools use a flatter curve near the peg, allowing a balanced pool to handle a same-sized trade with less price impact.
That distinction changes the choice for two superficially similar orders. Selling ETH for USDC in a classic pool moves through a volatile market price, while exchanging USDC for USDT in a deep, balanced stable pool should stay much closer to one-for-one, before fees. The stable result depends on both tokens maintaining their peg and on enough reserves remaining on the side you want to receive.
SyncSwap stable pools lose that advantage as reserves become heavily imbalanced or an asset breaks its peg; the curve grows steeper rather than promising a one-for-one exit. For a depegging token, a quote from a stable pool may be materially worse than its usual price. Judge the pool by its current reserves and output, not the word “stable” in its name.
What Does a Trade Cost and Require?
A trade requires the right assets on the same supported network, a wallet able to sign, and enough of that network’s gas asset. Check the token contract as well as its ticker: two tokens called USDC, for example, may represent different contracts and liquidity. A swap changes assets within one network; moving funds from another network is a separate bridge transaction.
SyncSwap DEX trading costs include the pool fee, price impact and network gas. A classic pool fee around 0.1% is a useful illustration, but fees differ by pool and the quoted output should reflect the applicable trading fee. Gas varies with network conditions and transaction complexity; a multihop route can improve the exchange rate yet cost more gas than a direct route.
Before signing, compare the quoted output with an outside reference price and check the minimum received. Slippage tolerance sets how far execution may fall below the quote: around 0.5% can be a starting point for a liquid pair, while a thin or fast-moving market may need a different limit. A wider limit makes execution more likely but permits a worse fill; if the minimum cannot be met, the swap reverts and gas is still spent.
An ERC-20 token may also require an allowance before a router can spend it. That approval is a separate onchain transaction unless the token and transaction support another authorization method. Check the spending amount you authorize, then assess the swap using the net output after all costs, rather than the displayed exchange rate alone.
When Does Providing Liquidity Make Sense?
Providing liquidity makes sense when expected fee income compensates you for the assets’ price movement and the risk of holding them in a pool. A deposit buys an LP claim on a proportion of reserves; trades change the pool’s asset mix, and fees increase the value available to LPs. Your eventual withdrawal reflects the pool’s reserves then, not the quantities you originally deposited.
For a classic 50/50 pool, the main comparison is with simply holding the two assets. If one token doubles against the other, an LP who entered at equal values ends up about 5.7% behind holding, before fees. That is divergence loss: arbitrage trades rebalance the pool as the price moves. High volume can offset it, but a quoted fee rate alone says nothing about how much volume your share will earn.
A stable pair usually has less price divergence while its peg holds, yet a depeg can leave LPs holding more of the weaker asset. Compare pool depth, trading volume, fee terms and the credibility of both assets before depositing. The return also depends on your share of the pool: more liquidity arriving later reduces your share of subsequent fees.
What Else Should You Check?
Three follow-up questions settle common mistakes about network transfers, token identity and LP returns.
Does a Swap Move Tokens Between Networks?
No. The input and output of a pool swap are assets on the network where that pool exists. If your funds are elsewhere, account for the bridge transfer, its cost and its settlement time before comparing the trade. Check which network your wallet is using before signing, since the same ticker can appear on several networks.
Does a Familiar Token Symbol Identify the Right Asset?
No. A symbol is a label, while a token contract identifies the asset the pool actually holds. Wrapped and bridged versions can have different issuers, redemption paths and liquidity even when their names look alike. Check the contract and the asset you will receive before treating two quotes as comparable.
Can Trading Fees Guarantee an LP Profit?
No. Fees accrue from trades, but their value can be smaller than divergence loss, a depeg loss or a decline in both deposited assets. Compare your expected withdrawal value with holding the assets, after gas and any other transaction costs. Choose a swap by its acceptable net output, and provide liquidity only when expected fees justify the pool’s asset risk.