There are two scenarios in which we recommend you would Mint/Redeem instead of swap:
- 1.You are an experienced crypto-trader and you understand the implications of each activity.
- 2.When you’re looking to perform a large transaction, that if done as a regular swap would cause a significant slippage and sub-optimal price outcome for the purchase.
No, unless you are trying to swap to or from BDX directly. BDX is only used when Minting/Redeeming in order to make up for the collateral ratio and keep the tokens stable.
Decentralized Exchanges use smart contracts to trade (swap) tokens. You will need to approve tokens for the first time in order to give the smart contract permission to use the particular tokens from your wallet. You would need to do this for each new token and for each new transaction (e.g. approve BDX for swapping and for staking).
There is a small fee which is typically 0.3%. The fee will be automatically calculated once you choose the tokens you would like to swap. 0.25% will be rewarded to the liquidity provider while the remaining 0.05% goes to the protocol’s treasury. In the future, we’ll work on enabling the usage of these funds to provide more interest to the holders of BDX. That will become more relevant as we’ll introduce Blindex Lending.