Swapping Tokens

Valeo includes a built-in token swap feature, allowing you to exchange one cryptocurrency for another directly within the app. This is analogous to having an exchange at your fingertips and is extremely useful for portfolio rebalancing or reacting to market changes. Here’s how it works and why it’s beneficial:

How Swaps Work

Suppose you hold SOL and want to convert some of it to USDC (perhaps to reduce exposure to market volatility or to have a stablecoin balance). Valeo’s swap interface would let you select the input asset (SOL) and the output asset (USDC), enter an amount, and then perform the swap. Behind the scenes, Valeo taps into a Solana decentralized exchange (DEX) or liquidity pool (such as Serum or Orca) to get the best rate. The swap executes as a single transaction on the Solana blockchain: SOL is debited from your wallet and USDC credited, all in one go. In your history, this will show up as a “Swap” type transaction (e.g., “Swapped SOL→USDC”)

Instant and Low-Cost

Just like sends, swaps on Solana confirm in seconds. You don’t have to deposit into an exchange or wait for confirmations back and forth. The network fee for a swap is slightly higher than a simple send but still typically just fractions of a cent or a few cents at most. There may also be a very small trading fee or slippage depending on the DEX, but Valeo will likely factor that into the quoted rate you see. In practice, it’s extremely cost-efficient to swap common tokens on Solana thanks to its high throughput and low fees.

No Custodial Risk or Hassle

With Valeo’s in-app swapping, you remain in control of your funds the entire time. You don’t have to send your tokens to a separate exchange service and trust it. The swap is non-custodial – executed via smart contract – and your new tokens arrive directly in your wallet. This eliminates risks like exchange hacks or withdrawal limits, and it’s all done within the friendly UI of Valeo.

Use Cases

You might use swapping to:

• Convert received payments into your preferred stable asset. For example, if someone pays you in SOL but you prefer holding dollars, swap SOL to USDC.

• Diversify or rebalance your portfolio (e.g., if SOL has grown to 80% of your holdings, you might swap some to other assets to maintain a desired allocation).

• Acquire tokens for specific uses (maybe you need a different token to participate in a DeFi app; you can swap directly instead of acquiring elsewhere).

• Take profit or hedge: If a certain crypto has gone up in value, you might swap some of it to a stablecoin to lock in gains or reduce risk.

Investor Perspective

The inclusion of a swap feature makes the Valeo app a more comprehensive financial tool. Users are more likely to keep their activity within the app (driving engagement) rather than using external exchanges. It also provides a revenue opportunity if Valeo charges a tiny spread or affiliate fee on swaps (though even if it doesn’t, it greatly enhances user experience).