> For the complete documentation index, see [llms.txt](https://docs.yei.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yei.finance/products/yeiswap/swaps.md).

# Swaps

YeiSwap lets you exchange one token for another directly within the Yei ecosystem. Trades are matched based on available liquidity in the pool, enabling fast and permissionless swaps.

### Mechanism

YeiSwap is a decentralized exchange (DEX) that integrates Yei’s native interest-bearing tokens.

* Users swap tokens as usual, with no change in experience.
* Liquidity providers (LPs) earn both **trading fees** and **lending yields**, boosting capital efficiency.

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## Token Swap

<figure><img src="/files/xEBL2w12kCcmiorjpCRD" alt="" width="563"><figcaption></figcaption></figure>

### Important Concepts

* **Price Impact**: Change in market price caused by your trade. Larger trades experience higher impact.
* **Slippage**: Difference between expected and actual price due to market changes. Set a slippage tolerance to manage this.

### How to Swap

Follow these steps to complete a swap on Yei:

* **Select Tokens:** Choose the token to swap from and to.
* **Set Slippage:** Adjust your slippage tolerance.

<figure><img src="/files/x07AXOzOtFWMHzZb4qxA" alt="" width="257"><figcaption></figcaption></figure>

* **Review Price Impact:** Higher impact = worse rates.
* **Approve Token:** Required only on the first swap for each token.
* **Sign and Confirm:** Approve the transaction in your wallet.

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## **Security**

View our [audit report here](/security/audits.md#yei-swap).