ParaSwap users: the best settings after the recent updates balance lower fees, safer route selection, and smarter slippage/deadline choices. This guide, "ParaSwap Trading Guide: Best Settings After Recent Updates", gives concise recommended settings, why they matter, and when to deviate — so you can trade with clearer risk controls and better execution.
ParaSwap Trading Guide: Best Settings After Recent Updates
Quick answer: set slippage conservatively (0.3–1.0% for liquid pairs), enable best-route aggregation, prefer gas-optimized routes during high congestion, use a short but forgiving deadline (30–120s), and review any affiliate fees before confirming. Below we explain each choice, provide examples, and give actionable takeaways.
Key ParaSwap Settings to Review
After the updates, some default behaviors changed for route selection and limit order handling. Review these settings before trading:
Route Preference: choose between "Best Price" (aggregated across DEXs) and "Gas Optimized" routes. Best Price maximizes output, Gas Optimized reduces gas cost at potential price trade-offs.
Slippage Tolerance: a guard against price movement during execution. Set based on liquidity and volatility.
Transaction Deadline: how long the signed transaction remains valid. Balance speed with network conditions.
Price Impact / Minimum Received: check the price impact estimator and set a minimum received to protect from poor routing.
Approvals and Permit: use token permits where supported to reduce gas and UX friction.
Explanation
Route Preference now uses updated heuristics to factor in multi-hop and split-route execution. This can produce slightly different fills than before — sometimes better, sometimes marginally worse when liquidity is fragmented.
Example
Trading 5 ETH → USDC on a congested mainnet: a Gas Optimized route reduced gas from ~120k to ~70k at the cost of 0.15% additional slippage. On a large trade, gas savings might justify the slight worse price.
Actionable Takeaway
For trades under ~1% of pair liquidity, prefer Best Price. For high gas times or small-profit trades, prefer Gas Optimized.
Recommended Default Settings (Practical Presets)
Use these as starting points; adjust per token and market conditions.
Slippage tolerance: 0.3% for blue-chip token pairs, 0.5–1.0% for mid-cap, 1–3%+ for low-liquidity or exotic tokens.
Route selection: Best Price for most swaps; Gas Optimized when gas > 150 gwei or for very small trades.
Deadline: 60–120 seconds on mainnet; 30 seconds for fast execution windows (e.g., arbitrage).
Price Impact warning: do not proceed if projected impact > 1–2% for routine trades unless intentional.
Split routing: allow split routes when available to improve fills and lower price impact.
Example
Swapping 200 DAI → USDT (high liquidity): set slippage 0.3%, Best Price, deadline 60s. Expect near-instant fill with minimal cost.
Actionable Takeaway
If unsure, use the recommended defaults above and monitor quoted minimum received. Adjust only when you understand the tradeoff between gas and price.
Limit Orders, API Use, and Mobile Changes
The updates included improvements to limit orders and expanded API features. If you place off-chain orders or integrate trading via the ParaSwap API, verify the new parameters.
For GUI limit orders, confirm the new execution window and cancellation policies. If you rely on automated fills, monitor order status closely after deployment.
Developers using the aggregator should revisit the updated endpoints and rate limits.
Learn more about programmatic integration in the paraswap api integration documentation and about order mechanics at the paraswap limit orders resource.
Example
Setting a limit order to buy 1 ETH at $2,900: make the order size conservative, set a moderate expiration, and enable notifications if supported.
Actionable Takeaway
Use limit orders for targeted fills, but beware that fragmented liquidity can delay execution — review the limit order performance parameters in the docs before relying on them for critical trades.
Execution Safety, Gas Strategies, and Edge Cases
Updated routing increases complexity; consider these evaluation criteria:
Slippage vs Price Impact: Slippage tolerance is a user-side cap; price impact shows expected market movement from your trade. Evaluate both.
MEV and Sandwich Risk: larger slippage tolerances can expose you to front-running. Smaller tolerances reduce this risk but increase chance of tx revert.
Low-liquidity pairs: split the trade or route via a liquid hub token (e.g., WETH) to reduce impact.
Network congestion: favor gas-optimized routes and consider timing trades outside peak windows.
Advanced users integrating via the app or wallet should also read the paraswap mobile usage notes for mobile-specific gas and UX constraints.
Example
A 10k USD trade in an illiquid alt might move price 5% if executed in one lump. Splitting it into two or routing via WETH can cut impact materially.
Actionable Takeaway
If projected price impact is significant (>1–2%), pause and reassess: consider splitting, adjusting route preference, or delaying execution.
Evaluation Criteria, Limitations and When to Deviate
Use the following checklist before confirming a swap:
Projected price impact vs acceptable slippage.
Gas estimate vs expected savings from alternative routes.
Pair liquidity (on-chain depth across sources).
Smart contract approvals and permit options.
Time sensitivity — is a delay acceptable?
Limitations:
Aggregators cannot eliminate slippage; they only route to minimize it.
During extreme volatility, quoted routes may fail or revert.
Mobile wallets may show slightly different gas estimations; always check the final confirmation screen.
Edge cases:
Very small token balances can be eaten by gas; avoid micro-swaps unless necessary.
Some tokens have transfer taxes or deflationary mechanics; factor token-specific behaviors into slippage settings.
Actionable Takeaway
Follow the checklist every time. If two of the checklist items trigger concern, pause and recalibrate your settings.
Final thoughts and recommended workflow
Workflow for typical trades:
Check pair liquidity and estimated price impact.
Select route preference: Best Price for most; Gas Optimized if gas-sensitive.
Set conservative slippage based on liquidity tier.
Set deadline (60–120s default). Use shorter deadlines only for time-sensitive plays.
Review minimum received and any affiliate fees. Confirm.
For repeated or programmatic trading, validate via the paraswap api integration docs to ensure your parameters match the updated behavior.
Trade carefully, monitor fills, and adjust defaults only after testing with small amounts. For mobile traders, consult the mobile guidance linked above to optimize for the smaller UX footprint.
Final takeaway: updated routing can improve outcomes but introduces nuance — the safe defaults and checklist above will help you adapt without increasing risk. Visit ParaSwap for the latest interface and docs.
FAQ
Q: What slippage setting should I use after the recent updates?
A: Use 0.3% for high-liquidity pairs, 0.5–1.0% for medium liquidity, and 1–3%+ for low-liquidity or exotic tokens. Tighten slippage if you want protection against sandwich attacks; loosen it only if you accept potential price movement.
Q: When should I use Gas Optimized instead of Best Price?
A: Choose Gas Optimized when network gas prices are high relative to your swap size, or when executing very small-margin arbitrage. Best Price remains preferable for larger trades where price impact dominates gas cost.
Q: Are limit orders safer after the updates?
A: The limit order flow has improved, but execution depends on market liquidity and order parameters. Use limit orders for targeted fills, but monitor them, and keep expirations reasonable to avoid stale orders.
Q: How do I avoid front-running and MEV risks?
A: Keep slippage tight, avoid large single-block swaps on thin liquidity, consider submitting transactions with private mempool solutions if available, and use split routing to reduce predictable footprints on a single DEX.
Q: Where can developers find integration details for the updated aggregator?
A: Integration and endpoint details are in the official integration docs: paraswap api integration.
Top comments (0)