DeFi trading

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Execute token swaps on decentralized exchanges with policy controls. IBM Digital Asset Haven

IBM Digital Asset Haven integrates with decentralized exchanges to enable token swaps directly from your wallets. This topic explains how to execute swaps, manage slippage, and apply compliance controls.

hat you need

  • A wallet with tokens to swap
  • Sufficient native tokens to pay gas fees
  • An understanding of swap mechanics such as slippage and price impact
Supported DEXs
DEX Networks
Uniswap Ethereum, Polygon, Arbitrum, Base

Components to configure

Swap execution
Execute swaps by using the /api-reference/swaps.
Slippage management
Slippage is the difference between the expected price and the executed price. Configure slippage tolerance based on liquidity and market conditions.
Token type Suggested slippage
Major tokens (ETH, USDC) 0.1 percent to 0.5 percent
Mid cap tokens 0.5 percent to 1 percent
Low liquidity tokens 1 percent to 3 percent
If slippage tolerance is set too low, the swap may fail. If it is set too high, you may receive fewer tokens than expected.
Policy controls
Apply policies to DeFi operations for compliance and risk management.

Policy recommendations

Large swap approvals
Require approval for swaps above a defined threshold.
Threshold Action
Over 50,000 USD Require 1-of-2 approval
Over 250,000 USD Require 2-of-3 approval
Velocity limits
Limit exposure to rapid, repeated swaps.
Limit type Configuration
Daily DeFi volume Block above 500,000 USD per day
Hourly frequency Alert above 50 swaps per hour
AML screening
Screen swap transactions by using the Chainalysis integration for SEVERE and HIGH alerts.

Best practices

Check liquidity first
Large swaps can have significant price impact. Before executing:
  1. Get a quote to review expected output.
  2. Check the price impact percentage.
  3. Consider splitting the trade into smaller swaps if liquidity is low.
Dedicated DeFi wallets
Use separate wallets for DeFi operations to improve security and reporting.
Wallet type Tag Purpose
DeFi operations defi Active DeFi trading
Staking staking Long term staking
Treasury treasury Main holdings
Monitor swap status
Track swap completion by using webhook events.
  • swap.completed for successful swaps
  • swap.failed for failed swaps