Dfns integrates with decentralized exchanges (DEXs) to enable token swaps directly from your wallets. This solution covers executing swaps, managing slippage, and applying compliance controls.
What you’ll need
- Wallet with tokens to swap
- Sufficient native token for gas fees
- Understanding of swap mechanics (slippage, price impact)
Supported DEXs
| DEX | Networks |
|---|
| Uniswap | Ethereum, Polygon, Arbitrum, Base |
Swap execution
Execute swaps via the dashboard or API.
Slippage management
Slippage is the difference between expected and executed price. Set appropriate tolerances:
| Token type | Suggested slippage |
|---|
| Major tokens (ETH, USDC) | 0.1% - 0.5% |
| Mid-cap tokens | 0.5% - 1% |
| Small-cap / low liquidity | 1% - 3% |
If slippage is too low, the swap may fail. If too high, you may receive significantly fewer tokens than quoted.
Policy controls
Apply policies to DeFi operations for compliance and risk management. See how to create DeFi policies.
Policy recommendations
Large swap approvals
Require approval for swaps above a threshold:
| Threshold | Action |
|---|
| > $50,000 | Require 1-of-2 approval |
| > $250,000 | Require 2-of-3 approval |
Velocity limits
Prevent rapid draining through DeFi protocols:
| Limit type | Configuration |
|---|
| Daily DeFi volume | Block above $500,000/day |
| Hourly frequency | Alert above 50 swaps/hour |
AML screening
Screen swap transactions with Chainalysis integration for SEVERE and HIGH alerts. See the compliance solution for KYT integration.
Best practices
Check liquidity first
Large swaps can have significant price impact. Before executing:
- Get a quote to see expected output
- Check price impact percentage
- Consider splitting into multiple smaller swaps if impact is high
Dedicated DeFi wallets
Separate DeFi operations from other funds:
| Wallet type | Tag | Purpose |
|---|
| DeFi Operations | defi | Active DeFi trading |
| Staking | staking | Long-term staking |
| Treasury | treasury | Main holdings |
Monitor swap status
Track swap completion via webhooks:
swap.completed - Swap successfully executedswap.failed - Swap failed
See how to configure webhooks.
Staking
Dfns also integrates with staking providers for delegated staking operations. See the staking feature overview and Figment integration.
