Minswap and Cardano DEXes work differently compared to other DEXes in the DeFi space such as Uniswap or Sushiswap built on the Ethereum Virtual Machine (EVM).
The processing of orders on a DEX on Cardano is done off-chain as orders are grouped or batched together and processed as opposed to help with scaling which are then executed directly on chain, as they are on Ethereum based DEXes. This ensures that orders are processed if the conditions of the orders are met in the smart contract. For example, swap token A for token B at price X.
Slippage is used to determine if the swap still goes ahead if it moves outside of the target swap price range. You can learn more about slippage and setting slippage tolerances on the Minswap DEX.
Understanding Batching Queues
On the main token screen of the Minswap, you will see price data, Total Value Locked (TVL) in ADA, Volume in 24H, Volume over 7 days and finally the amount of orders in Queue.
Cardano DEXes have the ability to perform limit orders. This means you can place an order on the DEX at a certain price point and it will be processed when that order reaches that price within your slippage tolerances.
The column on the home screen of Minswap indicates just how many orders are currently in the queue that may be set as limit orders or have been placed at a market price but since the price is volatile and has moved out of range, it is now seen as a limit order on the DEX.
A high number in the queue means that there are a lot of orders that are yet to be executed due to the movement in the price.
If your order remains in the queue and you are not having it executed, you may need to change your order and try again with a different price or slippage settings.
Tips to Get Your Order Processed Through the Queue When the Order Queue is High
There are a couple of tips that you can perform to get your order through on Minswap when the queue is high.
Change the Slippage Settings
When you place an order on the DEX, the price may change in a volatile token or market environment. By default, the slippage settings are 0.5%. This means that if the price is within the price range, then the order will execute. If it isn’t, the order will fail and remain pending until the price returns to your original order price. In comparison, on EVM based DEXes, if the swap fails, you lose your transaction fee.
Instead, change the slippage tolerance on the order to something a lot higher, 5%-10% price movements should get your order through, but the price may move significantly and a higher or lower price for your trade. Please keep that in mind.
Set a Limit Order at a Predictable Price
If you know the direction of the market, you can possibly set a limit order in the direction of that market movement. This is great for if you are shorting a token and are expecting the price to go down. You can set your order at a price point where you thing the token will drop to and allow the DEX to execute that order when the token drops to that price point. Same for if you are going long and expect a token price to rise and you wish to sell a token at a higher price to lock in profits from your trade.
