In-App Swaps with Leather and ALEX are now live
Oct 26, 2023
General Wallet Use
Connecting users to Bitcoin DeFi is one of the cornerstones of Leather. Now, Leather users can conduct ALEX-based swaps in-app with a user-friendly interface that enables a seamless swap experience, proudly powered by ALEX.
ALEX is one of the most established partners in the growing Bitcoin DeFi ecosystem. We’ll walk you through the new integration and why seamless token swaps are part of the DeFi experience.
What is ALEX?
ALEX uses the Stacks Bitcoin layer to give the next generation of Bitcoin users a versatile and easy-to-use DeFi platform. In a year where Ordinals has revived the excitement around protocols and projects developed on the Bitcoin blockchain, ALEX has stood out as a Bitcoin DeFi platform that has incorporated many of the emerging technologies in the ecosystem.
From the ALEX Bridge to the Orderbook and the BRC-20 On-chain Indexer, ALEX allows BTC users to move, swap and trade crypto assets with Bitcoin as the settlement layer (Stacks serves as the smart contract layer). All of these features come together to give users a trustless Bitcoin DeFi experience where they have full control over their digital assets.
Leather is one of two Bitcoin wallets that lets users connect to the ALEX DeFi platform.
What are token swaps?
In crypto, token swaps refer to the process of exchanging one type of cryptocurrency for another, typically on a one-to-one basis. They can happen for a number of reasons, including transitioning from one blockchain network to another (or between different tokens on the same blockchain) and providing liquidity for decentralized protocols.
Token swaps have allowed DeFi users to seamlessly exchange one token for another, facilitating liquidity and enabling them to participate in a wider range of DeFi services without being restricted to a single cryptocurrency. This liquidity and flexibility can allow users to optimize their DeFi strategies, access various yield opportunities and interact with a wide array of decentralized applications.
Additionally, DeFi protocols often act as building blocks that can be combined and connected to create more complex digital asset services. Token swaps allow users to move assets seamlessly between different DeFi applications, such as lending platforms and decentralized exchanges to unlock the full potential of the DeFi ecosystem. This interoperability drives innovation within the DeFi space and enables developers to create novel financial products and services that can cater to a broader range of users’ needs.
Token swaps have also played an increasingly larger role in Bitcoin DeFi. As builders look to expand the capabilities of Bitcoin DeFi protocols, token swaps have served as a key example of additional use cases for Bitcoin and Bitcoin-secured assets. When users connect their wallet to a Bitcoin DeFi protocol and opt to swap tokens, they’re essentially unlocking new opportunities for the BTC-based assets stored in their wallets.
How to conduct ALEX-based token swaps in the Leather app
If you’re already connected to ALEX via your Leather wallet account, open your Leather browser extension. You’ll notice that you now have a “swap” option in the top right corner of the Leather app’s home screen. Click on the “swap” button to get started.
You’ll then be asked to select which tokens you’d like to swap. In the example you see above, the user is converting the Stacks token (STX) to ALEX (ALEX’s governance token), so the user selects STX in the “You pay” dropdown. In the “You receive” dropdown, the user selects ALEX. You’ll also need to enter the amount of the original token you’d like to exchange before hitting the “review and swap” button.
The next screen gives you a detailed breakdown of the swap itself, including the estimated confirmation time and liquidity provider fee for your transaction. Review the information and hit “swap”.
You’ll be taken to your main Leather account page. This time, if you go to the Activity tab, you’ll see the swap appear as “Pending” until the swap has been confirmed.
It’s important to note that these swaps are sponsored transactions, which is when one party covers the transaction fees associated with a crypto transaction on behalf of another party. In this case, ALEX signs the swap as a sponsored transaction before it is passed to the ALEX SDK library. This means that ALEX takes on the transaction fee for the user, removing an extra step for them as they conduct the swap.
Explore token swaps in Leather today
Token swaps bring a newfound layer of versatility and utility to Bitcoin DeFi projects and the Bitcoin L1 itself. As Bitcoin evolves beyond its role as a digital store of value, tokenization and interoperability become critical components in expanding its functionality. Token swaps allow users to tap into the growing Bitcoin DeFi space, giving them access to a multitude of services and applications all while harnessing the security and resilience of the Bitcoin network.
In short, token swaps offer a gateway to unlocking the true potential of DeFi built on Bitcoin. By giving Leather and ALEX users the ability to swap tokens within the Leather app itself, we’re ensuring that users have another avenue with which they can interact with – and contribute to – the growth of Bitcoin DeFi.
To start swapping ALEX-based tokens today, you can download the Leather browser extension.