Stacks Swap: How to Swap STX & SIP-10 Tokens On-Chain

Swapping Stacks tokens has never been easier, thanks to Xverse’s new in-app Stacks swap aggregator, which lets you quickly and easily swap STX and SIP-10 tokens with just a few clicks. 

Read on to learn how to swap Stacks tokens using Xverse in this step-by-step guide for beginners. 

On-Chain Stacks Swap: Seamlessly Trade STX & SIP-10 Tokens Using Xverse

A token swap refers to the exchange of one token for another directly on the blockchain—through the use of smart contracts—to enable decentralized token trading. 

Using Xverse, you can now swap STX and SIP-10 tokens directly within your app, thanks to integrations with DeFi protocols Bitflow, Velar and Alex. 

Stacks, with its unique layer anchored to Bitcoin’s blockchain, allows users to experience the best of both worlds—Bitcoin's security and Stacks' programmability. 

Xverse opens this door by offering a simple interface for you to interact with Stacks assets and decentralized applications built on Stacks. 

Benefits of On-Chain Swapping Versus Trading on a Centralized Exchange

While centralized exchanges (CEX) often offer a familiar look and feel to traditional online trading platforms, decentralized token trading on-chain is widely considered the “better” way of trading among members of the Bitcoin community. Here are the main reasons why: 

Enhanced Security

During the entire process of on-chain token swapping, you retain full control of your private keys, meaning that you don’t have to trust a third party with your assets. On-chain swapping is typically non-custodial, and this minimizes the risk of losing your funds to third-party exchange hacks.

Flexibility 

When you’re swapping tokens on-chain, you don’t need to worry about unexpected halts in trading or deal with exchange withdrawal restrictions. As long as there is liquidity in the DEX, you have all the flexibility you’d want when trading tokens. 

Improved Transaction Speed 

On-chain swaps are often faster since they bypass the lengthy withdrawal and deposit processes associated with centralized exchanges. The time it takes to have a transaction confirmed is determined by the speed of the blockchain you’re trading on.

Privacy

On-chain token swapping allows you to transact more privately as the requirements to provide personal information through account verification are limited, especially compared to trading on centralized exchanges.

While the above reasons make on-chain swapping a better option, the wallet you choose to do it with impacts your trading experience. It is crucial that you pick a wallet that is designed for that purpose, and Xverse is one such wallet. 

How to Swap STX for SIP-10 Tokens on Xverse

Now, let’s take a look at how to swap STX for SIP-10 Tokens in your Xverse wallet step-by-step:

Download and Set up the Wallet

Before you can start swapping Stacks tokens, you’ll need to download Xverse wallet (if you haven’t already). It’s available for Android, iOS, and Chrome. 

Visit the official Xverse website and download the wallet version you would like. For this guide, we’ll go with the Chrome extension. Download and install the extension. 

Create a New Wallet and Password

Open the Xverse Chrome extension and select “Create a New Wallet.” You’ll be prompted to create a strong, secure password.

Back Up the Wallet

As part of the setup process, Xverse generates a unique recovery phrase. 

You need to write this phrase down and store it in a safe place. You will need it if you ever lose or forget the password, and you need to recover the wallet.

Verify Recovery Phrase

Xverse will then ask you to confirm parts of the recovery phrase to ensure it’s correctly backed up. Follow the prompts to complete this step.

Ensure You Have Enough Amounts of STX

Your Xverse Wallet is now ready! 

But to start swapping Stacks tokens, you need to have some in your wallet to get started. You’ll also need a sufficient amount of STX to cover transaction fees. 

You can receive STX from another wallet through the STX wallet address you can generate within the wallet, or you can purchase STX using the in-app fiat-to-crypto onramp. 

Start swapping

After getting your hands on some STX, enter the amount you’d like to swap in the designated field in the Xverse interface. 

Make sure to check the balance requirements for the token you wish to receive, as well as any minimums required for a successful swap.

When you initiate the swap, Xverse will show you the exchange rate available from the liquidity pools integrated into the wallet. Exchange rates may fluctuate depending on the supply, demand in the pools and market activity. 

Once you confirm the swap, a smart contract processes the trade. 

Your transaction is then recorded on the Stacks blockchain, and you’ll see the new tokens reflected in your wallet once the transaction is confirmed by the network. 

Download Xverse for Easy On-Chain Stacks Swapping

Xverse Wallet is the leading Bitcoin Web3 wallet that lets you explore both the Bitcoin L1 and L2 ecosystems so that you can interact with Bitcon-native assets like Ordinals, Runes, and Rare Sats, as well as Layer 2 Stacks built on networks such as Stacks and Mezo. 

Available as a browser extension and mobile app on both Android and iOS, Xverse provides a secure, user-friendly experience for on-chain Stacks token swaps.

Download Xverse Wallet and start swapping your Stacks tokens today.