What is Verse Dex?

How to connect to Verse DEX

How to swap on Ethereum

How to contribute to liquidity pools and earn yield

How to look at DEX analytics

How to do cross-chain swaps

How to trade on smartBCH

Benefits of funding liquidity

What is the Verse DEX?

The Verse DEX, available at verse.bitcoin.com, is a full-featured decentralized exchange. It is a key component of the Bitcoin.com/Verse ecosystem, providing anyone in the world with a secure way to permissionlessly swap cryptocurrencies without having to rely on third-party custodians. You can also earn yield by providing liquidity to the Verse DEX. More information about VERSE token is available at getverse.com.

How to connect to Verse DEX

Connect to your favorite Web3 wallet, including the Bitcoin.com Wallet (via WalletConnect). Here’s how:

On mobile

  1. Go to Verse.bitcoin.com and select “Connect Wallet.”

  2. Choose WalletConnect as the connection method, and select Bitcoin.com Wallet.

  3. In the Bitcoin.com Wallet, approve the connection request.

On desktop

  1. Go to verse.bitcoin.com and select “Connect Wallet.”

  2. Choose WalletConnect as the connection method. This will display a QR code.

  3. Open the Bitcoin.com Wallet app, select the scanner icon, and scan the QR code that’s displayed on your desktop.

  4. Tap “CONNECT” in your Bitcoin.com Wallet app to confirm the connection.

You can also use the Verse DEX with MetaMask. Here’s a complete guide for getting set up with Metamask, and here’s how the DEX looks on desktop with MetaMask:

How to swap on Ethereum

On mobile

  1. Make sure your wallet is connected to the Verse DEX (verse.bitcoin.com) (see above for how to connect).

  2. Check to make sure the details of the swap are ok. You can get extra information by tapping the “Show swap details” blue text above the “Swap Preview” button. This will show you things such as the Exchange Path, Exchange Fee, and Slippage tolerance.

  3. Finally, start the swap process by tapping the “Swap Preview” button.

  4. Approve the swap in the Bitcoin.com Wallet.

  5. You’re done! You’ll receive the swapped asset in your Bitcoin.com Wallet when the transaction has been processed on the Ethereum blockchain.

On desktop

  1. Make sure your wallet is connected to the Verse DEX (verse.bitcoin.com) (see above for how to connect).

  2. On Verse.bitcoin.com, create your swap transaction and select “Swap Preview”.

  3. Confirm the transaction in your Bitcoin.com Wallet app.

You’re done! You’ll receive the swapped asset in your Bitcoin.com Wallet when the transaction has been processed on the Ethereum blockchain.

How to contribute to liquidity pools and earn yield

You can provide liquidity to the Verse DEX by depositing assets into liquidity pools. You’ll earn yield in the form of the fees paid by people who trade the pair. The APY for each pool is displayed in the Analytics tab (see “Monitor analytics” below).

Here’s how it works:

  1. In the “Pools” tab, select the pool you’d like to add liquidity to and select “Add.”

  1. Enter the amount you’d like to deposit. Note that you’ll need to deposit equal amounts of both assets into the liquidity pool.

  2. Select “Unlock and Transfer Funds.”

  3. Confirm the transaction in your wallet.

  4. You’re done! You’ll now earn a share of all the fees generated in your pool.

You can track your rewards in the “Pools” tab and withdraw your liquidity + rewards whenever you want.

How to look at DEX analytics

This is a dashboard for viewing DEX statistics such as APY, total liquidity, volume, and the most popular trading pairs.

On mobile

  1. Tap the 3 dot (meatballs) menu button in the top right corner of the DApp, and tap “Analytics.”

  2. This will take you to the Dashboard, which shows an overview of the Exchange’s liquidity, volume, top liquidity pairs, and top tokens. Scroll down to see all of these categories.

  3. You can get more detail on liquidity pairs and tokens by clicking on the Pair or Token name. For example, tapping on “VERSE-WETH” reveals information such as fees generated, number of transactions, and average trade size in the last 24 hours.

On desktop

  1. Go to verse.bitcoin.com and click on the “Analytics” tab.

  2. This will take you to the Dashboard, which shows an overview of the Exchange’s liquidity, volume, top liquidity pairs, and top tokens. Scroll down to see all of these categories.

  3. You can get more detail on liquidity pairs and tokens by clicking on the Pair or Token name. For example, tapping on “VERSE-WETH” reveals information such as fees generated, number of transactions, and average trade size in the last 24 hours.

How to do cross chain swaps

You can toggle between CEX and DEX modes, and the CEX (centralized exchange) enables cross-chain low fee swaps of popular coins on blockchain networks that aren’t yet supported by the DEX. Cross-chain swaps are facilitated by our partners Sideshift and Changenow.

Here’s how it works:

  1. From the network drop-down menu, select “Centralized” then “Connect wallets.”

  2. Choose a connection method. If you’ve already created a Bitcoin.com account, you can sign in with Apple or Google. You can also sign in to your Bitcoin.com Wallet with WalletConnect or, separately, choose to connect to your Ethereum wallets via MetaMask.

  3. Once connected, your Wallet’s assets will be shown in the Verse dashboard.

  4. Select the assets to swap, then select “Swap Preview.” This will display a QR code for a wallet address and requested amount of cryptocurrency.

  5. Scan the code in your Bitcoin.com Wallet and confirm the transaction.

  6. You’re done! You’ll receive the swapped asset in your Bitcoin.com Wallet once the transaction has been processed.

How to trade on smartBCH

Verse DEX enables permissionless trading on smartBCH, the Bitcoin Cash sidechain. For this, we recommend interacting with the Verse DEX via MetaMask. Here’s a complete guide for getting set up with Metamask.

Getting set up on smartBCH

To use the Verse DEX on smartBCH you’ll need to add smartBCH to your web3 wallet. While the VerseDEX will soon be integrated directly to the Bitcoin.com Wallet, for now we recommend trading on the Verse DEX using MetaMask.

Here’s how to set it up:

Adding smartBCH RPC to MetaMask

  1. Add smartBCH network to MetaMask

Benefits of funding liquidity

  1. Supports the growth of the Bitcoin.com Verse ecosystem.

  2. Allows you to earn a proportional share of the fees generated on the trading pair you’ve funded. Specifically, 0.25% of trading volume is paid out to liquidity providers (LPs). This means that if you were the only liquidity provider to the VERSE/ETH pool, and the pool did $100,000 in volume, you would earn $250 in fees. If you and one other person each provided 50% of the liquidity to the VERSE/ETH pool, and the pool did $100,000 in volume, you would each earn $125 in fees, and so on. You can track your LP position in the pools tab of the Verse DEX (verse.bitcoin.com) to see how much you have earned. Third-party DeFi tools including Debank will also show you your LP positions.

  3. Eligibility for bonus incentives, including upcoming Farm Rewards which will require you to stake your LP position to earn even more VERSE. Coming very soon!

What is Impermanent loss?

Impermanent Loss (IL) refers to the unrealized opportunity cost that happens when, between the time you deposit tokens in a liquidity pool and the time you withdraw them, the price of one token in the pool changes relative to its pair. It’s an unrealized opportunity cost - ie. not a real loss - for two reasons. First, because it is measured against what the value of your deposited assets would have been had you simply held them (ie. had you not deposited them in the pool). This means that it’s entirely possible for the dollar value of your liquidity pool tokens to increase while you are still in an IL position. Second, it is unrealized, or impermanent, because the relative value of the tokens in the pool can return to the same ratio as when you deposited them. In other words, as long as you don’t withdraw your liquidity from the pool when the ratio is out of balance, your loss will not be realized.

So why do people still provide liquidity to DEXs if they’re exposed to potential losses? It’s because the yield that is paid out to liquidity providers has the potential to more than offset the risks associated with IL. In the case of the Verse DEX, as described above, yield for liquidity providers is a proportional share of 0.25% of the trading volume for the pair. In many cases, there is also the opportunity to stake liquidity pool tokens in exchange for additional rewards, which is known as yield farming — and for VERSE, Farm Rewards will be coming very soon!

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