Everything you need to know about swapping tokens, providing liquidity, and using Honeyswap on Gnosis Chain. Browse the topics below to get started.
Honeyswap is a decentralized exchange (DEX) built on Gnosis Chain (formerly xDai Chain). It is a fork of Uniswap v2, adapted for the fast and low-cost Gnosis Chain environment. Honeyswap allows anyone to swap ERC-20 tokens, provide liquidity to earn trading fees, and participate in the 1Hive ecosystem without relying on a central authority.
The protocol runs entirely on smart contracts. When you make a trade on Honeyswap, you interact directly with these contracts — no order books, no custodians, and no registration required.
You can connect to Honeyswap using any wallet that supports Gnosis Chain, including:
Make sure your wallet is configured for the Gnosis Chain network (Chain ID: 100, RPC: https://rpc.gnosischain.com) before connecting.
xDAI is the native gas token of Gnosis Chain. It is a stablecoin pegged 1:1 to the US Dollar, bridged from DAI on Ethereum. Because xDAI is stable and transaction fees on Gnosis Chain are extremely low (fractions of a cent), Honeyswap is able to offer a smooth, affordable trading experience compared to Ethereum mainnet DEXes.
When you trade on Honeyswap, you pay gas fees in xDAI instead of ETH, which makes the platform accessible for smaller trades and frequent users.
Swapping tokens on Honeyswap is straightforward:
The swap is settled on-chain instantly. You can track your transaction on the Gnosis Chain block explorer.
Slippage tolerance is the maximum price difference you are willing to accept between the quoted price and the final execution price of your swap on Honeyswap. It exists because token prices in liquidity pools can shift between the moment you submit a transaction and when it is confirmed on-chain.
You can adjust slippage in the settings (gear icon) on the Honeyswap swap page. Setting it too low may cause your transaction to fail; setting it too high may expose you to front-running.
To add liquidity on Honeyswap, navigate to the Pool tab and follow these steps:
In return, you receive LP (liquidity provider) tokens representing your share of the pool. These tokens earn a 0.3% fee on every trade routed through that pool, proportional to your share.
Impermanent loss (IL) occurs when the price ratio of the two tokens in a liquidity pool changes compared to when you deposited them. The larger the price divergence, the greater the impermanent loss relative to simply holding the tokens.
Yes, impermanent loss can affect Honeyswap liquidity providers. However, it is called "impermanent" because if prices return to their original ratio, the loss disappears. Trading fees earned over time can offset impermanent loss, especially in high-volume pools.
Pairs that are correlated in price (e.g., stablecoin/stablecoin) tend to have much lower impermanent loss risk.
HNY (Honey) is the native governance token of the 1Hive community, which is the open-source community behind Honeyswap. HNY holders can participate in governance decisions, propose and vote on changes to how community funds are allocated, and influence the direction of the ecosystem.
HNY is traded on Honeyswap and used within the broader 1Hive ecosystem including Gardens (governance), Celeste (dispute resolution), and community farms.
HNY has a continuous issuance model that distributes new tokens to active community members and liquidity providers, encouraging participation and long-term alignment.
Governance for Honeyswap takes place through the 1Hive Gardens platform. To participate:
The governance process is fully on-chain and designed to be community-driven, meaning anyone holding HNY can have a voice in the future of Honeyswap.
Honeyswap charges a 0.3% trading fee on every swap. This fee is automatically distributed to liquidity providers proportional to their share of the pool. There is no additional protocol fee — the full 0.3% goes to LPs.
On top of the trading fee, you also pay a small gas fee in xDAI to cover the Gnosis Chain transaction cost. These gas fees are typically less than $0.01, making Honeyswap one of the most cost-efficient DEXes available.
Honeyswap is built on the Uniswap v2 codebase, which is one of the most battle-tested and widely audited smart contract systems in DeFi. The underlying contracts have processed billions of dollars in trading volume.
That said, all DeFi protocols carry inherent risks, including smart contract bugs, oracle manipulation, and liquidity risks. You should:
Honeyswap is a non-custodial protocol — your funds remain in your wallet until a transaction is signed by you.
Transaction failures on Honeyswap are usually caused by one of these reasons:
If the problem persists, try refreshing the page, reconnecting your wallet, or reaching out to the 1Hive community on Discord for support.
To move tokens from Ethereum (or other networks) to Gnosis Chain so you can trade on Honeyswap, you can use one of the following official bridges:
After bridging, ensure your wallet is connected to the Gnosis Chain network and you have a small amount of xDAI for gas fees before you start swapping on Honeyswap.