Overview
Mooniswap is an automated market maker built by the 1inch team in 2020. It boosts liquidity provider earnings by retaining slippage profits and making trades harder to front-run. Everything runs on Ethereum, and users keep control of their funds at all times.
What is Mooniswap
The protocol tweaks the traditional AMM model. Instead of letting arbitrage bots take all the slippage, it keeps that value in the pool, rewarding LPs more. The swap fee is 0.30%, with most of it distributed to liquidity providers. No custody, no middlemen, just smart contracts on Ethereum.
Trading Experience and Interface
Using Mooniswap is straightforward. You connect a wallet, select a pair, and swap. Adding liquidity is just as simple. The interface stays minimal, focusing only on trading and managing pools. There is no order book, no extra screens—just clean DeFi swapping. You only pay Ethereum gas fees in addition to the protocol swap fee.
Fees and LP Earnings
The swap fee is fixed at 0.30%. A small portion may go to partner apps, but most goes back to LPs. By retaining slippage profits, LPs often see higher returns than on other AMMs. For active pools, these earnings can be significantly better.
Security and Decentralization
Mooniswap is fully non-custodial. Funds remain in user wallets until trades finalize on-chain. If the frontend goes offline, assets stay safe because the contracts control everything. The protocol also slows price updates slightly, reducing front-running and improving fairness for traders and LPs.
Liquidity and Supported Assets
The AMM works with any ERC-20 token pair. Major assets like ETH and stablecoins have healthy liquidity, while smaller pools depend on user interest. There is no KYC and no trading restrictions, just open access for DeFi users.
Pros and Cons
- Pros: Users always keep custody of funds; LPs earn more with slippage retention; Transparent 0.30% swap fee; Built-in front-running protection; Supports all ERC-20 tokens.
- Cons: Limited to swaps with no fiat or extra products; Some pools have low liquidity; Less traffic than top AMMs; Few additional features beyond LP pools.
Who Will Like Mooniswap
Mooniswap fits liquidity providers who want better returns and traders who value a clean, non-custodial experience. It’s easy to use for anyone active in Ethereum DeFi. For those who need high liquidity or multi-chain access, it may feel small compared to bigger competitors.
Final Thoughts
Mooniswap stays focused on its core idea—boosting LP earnings while keeping swaps decentralized and fair. It’s simple but effective, offering a safe way to trade and earn in DeFi. For users who value control and higher rewards, it remains a solid choice.