8. Swap

Swapping cryptocurrencies directly from your DeFi Smart Account (DSA) on Dough Finance is a useful feature that allows you to manage your asset allocations and respond to market changes efficiently. Here's a step-by-step guide on how to execute a swap using the platform's integrated tools.

Step-by-Step Guide to Swapping Cryptocurrencies

Step 1: Initiate the Swap Process

1. Access the Swap Function: Navigate to the "Your supplies" section of Dough Finance where your collateral assets are displayed. Locate the ETH you wish to swap and click the "Swap" button.

Step 2: Specify the Swap Details

1. Enter the Amount to Swap: Once you press the "Swap" button, a popup will appear showing your current ETH balance which is being used as collateral and accruing APY yields. In this example, enter "1 ETH" as the amount you wish to swap.

2. Review the Conversion: The system will calculate the best possible conversion rate for swapping 1 ETH to USDC. This process ensures you get the most USDC with the smallest price impact.

Step 3: Confirm the Swap

1. Review Swap Details: Note that there will be a slight decrease in your Health Factor—from 4.55 to 4.54—due to the different Loan-to-Value (LTV) ratios between ETH and USDC.

2. Execute the Swap: After reviewing all the relevant details and ensuring the terms are satisfactory, press the blue "Confirm" button to execute the swap transaction.

Step 4: Transaction Completion

Finalize the Swap: After confirming, the transaction will process. Once finalized, you will see an updated balance in the "Your supplies" section, reflecting the swapped assets.

Step 5: Review Your Portfolio

Check Your Asset Balances: Ensure that both ETH and the newly acquired USDC are correctly reflected in your supplies. This confirms the successful execution of the swap.

Understanding Impact on Your Portfolio

• Health Factor Adjustment: The slight decrease in the Health Factor after the swap is due to the difference in LTV ratios between ETH and USDC. It's important to understand these metrics, as they affect your borrowing capacity and risk of liquidation.

• Optimizing Returns: Swapping allows you to adjust your portfolio according to your investment strategies and market conditions, potentially optimizing your returns.

What’s Next?

Now that you've successfully swapped your assets, you might want to explore more advanced features such as looping, which involves leveraging your assets for additional investment opportunities. Check out our "Loop Guide" for detailed instructions on how to maximize your investment strategy on Dough Finance.

Congratulations on successfully managing and adjusting your asset portfolio on Dough Finance! This swap functionality not only enhances your flexibility in asset management but also aids in effective risk management and portfolio optimization.