Swapping Ethereum tokens using Phantom Wallet is typically straightforward, but there are instances when swaps may fail or encounter issues. This guide will walk you through the common reasons for failed swaps and provide clear steps to resolve them.
Insufficient Funds
To execute any transaction on the Ethereum network, you need enough ETH in your wallet to cover the transaction fees. These fees, known as gas fees, vary depending on the network’s congestion and the complexity of the transaction.
Why This Happens:
If your wallet doesn’t have enough ETH to pay for the gas fees, the transaction cannot be processed. The network requires ETH for covering network costs.
Solution:
- Check your ETH balance and ensure you have a sufficient amount of ETH on the Ethereum network. The required amount depends on the current gas prices, which you can monitor using tools like Etherscan Gas Tracker.
- If your balance is low, transfer ETH to your wallet before retrying the swap.
Reminder: Without ETH, no transaction can be completed on the Ethereum network.
Transfer Fees
Some Ethereum-based tokens come with transfer fees. These fees are specific to the token and are deducted during transactions. Due to the 0x aggregator used by Phantom Wallet, tokens with transfer fees cannot be swapped through Phantom.
Why This Happens:
The 0x aggregator does not support Ethereum tokens with embedded transfer fees, causing swaps to fail.
Solution:
- Verify if the token you’re trying to swap has a transfer fee. Use tools like De.Fi to check token details.
- If the token has a transfer fee, you will need to use an alternative platform like Uniswap, which supports these types of tokens.
Note: Phantom cannot process tokens with transfer fees, so you’ll need to explore other options for these swaps.
Slippage
Slippage occurs when the price of a token changes between the time you initiate the swap and the time it’s executed. Phantom Wallet sets a default slippage tolerance, and if the price movement exceeds this tolerance, the swap will fail.
Why This Happens:
Significant price changes during the transaction cause the quoted price to deviate beyond the acceptable range, leading to a failure.
Solution:
- Increase the slippage tolerance in your Phantom Wallet settings.
- Enable Auto slippage
- Retry the swap with a slightly higher tolerance to account for price volatility.
- Be cautious when increasing slippage, as this may result in a less favorable exchange rate.
Liquidity Provider Issues
Phantom Wallet uses the 0x aggregator to fetch the best rates from multiple decentralized exchanges (DEXs) on Ethereum and other EVM-compatible chains. However, liquidity issues can arise when the token pair you’re swapping has insufficient availability.
Why This Happens:
Low liquidity for the selected token pair prevents the aggregator from finding a match to complete the swap.
Solution:
- Retry the swap later when market activity increases, as this can improve liquidity.
- Consider swapping smaller amounts to reduce the strain on available liquidity.
Pro Tip: The 0x aggregator optimizes rates across DEXs, so the issue is often resolved when liquidity improves on one or more platforms.
Price Impact
Price impact refers to the effect a trade has on the market price of a token. When you execute a swap, the size of your trade relative to the available liquidity in the pool can significantly influence the token price. For tokens with low liquidity, even small trades can cause substantial price changes, resulting in a less favorable exchange rate.
Why This Happens:
Price impact occurs when the liquidity pool for the token pair you’re swapping is too shallow to handle the trade size without affecting the price. This is especially common with new tokens or during times of low trading activity.
How to Fix It:
- Swap Smaller Amounts: Breaking large trades into smaller transactions reduces price impact, as each trade affects a smaller portion of the pool.
- Trade During High Liquidity: Execute swaps when market activity is high, as more liquidity will be available to support your trade.
- Monitor Token Liquidity: Use blockchain explorers or DEX tools to check the liquidity pool size before initiating a swap. Tokens with deeper pools experience less price impact.
- Please note: If you can not swap these tokens your funds are likely lost.
Malicious Account Error
If you see an error stating that the swap failed due to a malicious account, it indicates that the token you are trying to swap is likely a scam token. Scam tokens are designed to prevent swaps and should be avoided. Unfortunately, these tokens cannot be swapped, and it’s best not to interact with them further.