Pool Party is a decentralized exchange (DEX) built on Canton Network, operating on an Automated Market Maker (AMM) model. Unlike traditional exchanges that rely on an order book to match buyers and sellers, Pool Party executes trades directly against liquidity pools, pools of tokens deposited by users. This eliminates the need for a counterparty, enabling permissionless, continuous trading at algorithmically determined prices.
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When you execute a swap on Pool Party, you are trading directly against a liquidity pool rather than a counterparty. The exchange rate is determined algorithmically, specifically by the ratio of assets held within the pool at the time of your trade. This is the foundational mechanic of any Automated Market Maker (AMM), and it means prices update continuously with every trade.

Step 1: Open your Canton Wallet

Launch the Canton Wallet and ensure your wallet is connected and funded.
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Step 2: Navigate to Trade

From the Home page, select the Trade tab to access Pool Party's swap interface.

Navigation: Home > Trade
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Step 3: Select your token pair

Choose the token you want to swap from and the token you want to swap to. Make sure a liquidity pool exists for your selected pair before proceeding.

Navigation: Trade > Select Tokens
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Step 4: Enter the amount

Input the amount you wish to trade. You can enter either the amount you want to spend or the amount you want to receive, depending on the interface option available.
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Step 5: Review the quoted price and estimated slippage

Before confirming, carefully review the exchange rate and estimated slippage displayed. This gives you a clear picture of the price you will receive and how much the execution price may deviate from the quote.
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Step 6: Confirm the swap

Once you are satisfied with the quoted terms, confirm the transaction. The swap will settle on the Canton Network and is typically confirmed within seconds.

Slippage is the difference between the price you expect when initiating a swap and the price at which the trade actually executes. It is an inherent characteristic of AMM-based trading and becomes more pronounced as trade size increases relative to the total liquidity in the pool, a concept known as price impact.

Pool Party displays your estimated slippage before you confirm any swap, giving you full visibility into your expected execution price. As a best practice, be especially mindful of slippage when trading large amounts or in pools with lower total liquidity.

Why is my swap failing?

The most common reasons for a failed swap are insufficient CC to cover the Network Fee, low liquidity in the selected pool, or a slippage tolerance that is too low for current market conditions. Ensure your wallet is adequately funded before retrying.
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What is price impact and how does it affect my swap?

Price impact is the effect your trade has on the pool's token ratio, and by extension, the exchange rate. Larger trades relative to total pool liquidity will shift the ratio more significantly, resulting in a less favorable rate. Pool Party displays the estimated price impact before you confirm.
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Can I reverse a swap after confirming?

No. Once a swap is confirmed and submitted to the Canton Network, it is processed on-chain and cannot be reversed. Always review the quoted price, slippage, and fees carefully before confirming any transaction.
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What happens if slippage is higher than expected?

If the actual execution price falls outside your acceptable range due to slippage, the transaction may fail to protect you from an unfavorable trade. You can adjust your slippage tolerance in the swap settings, though setting it too high increases the risk of receiving a worse rate than expected.
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Does pool liquidity affect my swap rate?

Yes. The less liquidity a pool holds, the greater the price impact of your trade. For best results, trade in pools with higher total liquidity or break large trades into smaller amounts to reduce price impact.
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