Swap provides the most basic mechanism for exchanging one denom for another. It is a core building block of Multihop Swaps and Taker limit order. The swap operation operates by trading a TokenIn through the available TickLiquidity (PoolReserves and LimitOrderTranches) and outputs a specified TokenOut. When performing a swap we iterate through liquidity (PoolReserves & LimitOrderTranches) from best to worst price. As we iterate through each instance of TickLiqudity we fully exhaust it before moving to the next TickLiquidity instance. This iteration continues until ONE of the following conditions is met:
  1. All available liquidity has been exhausted.
    • If there is no available TokenOut liquidity for the given pair at the beginning of the swap it will fail and return an ErrNoLiquidity.
    • If swap is called through a IMMEDIATE_OR_CANCEL limit order it will still succeed if liquidity is exhausted and only a portion of the AmountIn has been used. In all other cases a partial fill of a swap will result in a failure.
  2. The AmountIn has been hit (ie. the user has swapped through 100% of the supplied TokenIn.
  3. MaxAmountOut has been set and the TokenOut amount is equal to MaxAmountOut.
    • In cases where only a portion of the AmountIn is used, only the used portion of TokenIn will be debited from the user’s account.