Slippage On Instant Swaps: Why ChangeNOW Rates Never Matched The Quote
In this article (9)
An instant swap shows you a number before you send anything: this much in, that much out. The number is the whole sales pitch, because it is the only thing a user can compare across services. In our transactions, the number that arrived was consistently smaller than the number on the screen.
The Legitimate Reasons
Some of that gap is structural and honest. A non-custodial swap is not a single trade. Your coin has to confirm on one chain, be routed to a liquidity venue, executed there, then sent out on another chain. Between the quote and the execution sit block times, network fees at both ends, and whatever the order book did in the meantime. On a volatile pair, minutes of confirmation time can move the price by a full percentage point on their own.
Services handle this in one of two ways. A fixed rate locks the number and charges a premium for the risk the operator takes. A floating rate passes the market movement to you and is cheaper when nothing happens. Both are defensible if the difference is explained at the point of choosing.
What We Observed
In our transactions the delivered amount fell short of the displayed estimate every time, including on swaps that confirmed quickly and on pairs that barely moved in the window. The shortfalls were not catastrophic individually. Across a run of transactions they became the largest cost of using the service, well above the headline fee.
“And treat a service that will not itemise its fees as more expensive than one that does, whatever the screen says.”
Two things made the shortfall hard to audit. The deducted network fee was not itemised against the on-chain fee actually paid, and the reference rate used at execution was not disclosed, so there was nothing to check the outcome against. When you cannot reconstruct a price, you cannot tell a market move from a spread.
The Question We Asked
We asked ChangeNOW to explain, for specific transaction hashes we supplied, the reference rate used at execution, the venue where the trade was filled, and the breakdown between network fee and service spread. That is a question any regulated venue answers as a matter of routine. We will publish the reply.
How To Protect Yourself
Price the whole route, not the headline. Before committing, note the quote, then check the same pair on a liquid exchange and on a second swap service. Do the arithmetic afterwards on what actually landed, not on what was promised.
Prefer a fixed-rate option for anything that matters, and read what the service does if the rate lapses: refunding to your original address is very different from executing at whatever the market has become. Test any new pair with a small amount first. And treat a service that will not itemise its fees as more expensive than one that does, whatever the screen says.
This article describes the first-hand experience of the Retail News Asia team and publicly posted user complaints. It does not assert that ChangeNOW has broken any law. ChangeNOW was invited to respond before publication and any reply will be added in full.
Questions & Answers
Q.What is the primary difference between a fixed rate and a floating rate instant swap service?
What is the primary difference between a fixed rate and a floating rate instant swap service?
A fixed rate service locks the price but charges a premium for risk, while a floating rate passes market movements to the user, being cheaper when the market is stable. The difference should be explained at the point of choosing.
Q.What steps does the article suggest users take to protect themselves when using instant swap services?
What steps does the article suggest users take to protect themselves when using instant swap services?
Users should compare the quote against a liquid exchange and another swap service, then calculate what actually landed. Prefer fixed rates for important transactions and test new pairs with small amounts.
Reader pulse
Does this impact your trust in instant swap services?
20,741 votes so far