Netswap Crypto Exchange Review: Low Fees, Low Liquidity, and the Reality of a Niche DEX

Most people looking for a crypto exchange think of Coinbase, Binance, or maybe Uniswap. But what if you’re trading small amounts on the Metis blockchain and want to avoid $5 gas fees? That’s where Netswap comes in. It’s not a household name. It doesn’t have millions of users. But for a very specific kind of trader, it might be the only option that makes sense.

What Is Netswap?

Netswap is a decentralized exchange built on the Metis Andromeda Layer 2 network. That means it’s not on Ethereum’s main chain-it’s on a faster, cheaper sidechain designed to solve Ethereum’s high fees and slow speeds. Netswap uses the same automated market-making (AMM) model as Uniswap, but it’s optimized for Metis. You swap tokens directly from your wallet. No sign-up. No KYC. No middleman holding your crypto.

Its native token, NETT, is used for governance. All 16.66 million tokens were distributed to users through liquidity mining and staking. No team allocation. No pre-sale. That’s rare in crypto and worth noting.

How Netswap Works

To use Netswap, you need two things: a wallet and assets on Metis Andromeda.

First, connect your wallet. Netswap works with MetaMask, Trust Wallet, and WalletConnect-all standard Ethereum-compatible wallets. Then, you need to bridge your Ethereum tokens (like ETH or USDC) over to Metis. This uses the official Metis bridge, which takes 8-12 minutes. Once your assets are on Metis, you can trade them on Netswap.

Trades are fast. Block times on Metis are around 4 seconds. That’s three times faster than Ethereum. Gas fees? Usually between $0.02 and $0.05 per trade. Compare that to Uniswap, where you might pay $2-$5 just to swap two tokens. For someone doing small, frequent trades, that’s a massive saving.

You can also use leverage. Netswap lets you trade with up to 5x leverage on select pairs. That’s not common on most DEXs. But it’s not a full futures platform-it’s basic margin trading built into the swap interface.

Pros of Netswap

• Extremely low fees: At $0.03 per trade, it’s one of the cheapest places to swap on-chain. If you’re doing micro-trades, this is a game-changer.
• Fast transactions: With 4-second block times, your trades confirm almost instantly. No waiting 10 minutes for confirmation.
• Non-custodial: Your keys, your crypto. Netswap never touches your funds. That’s the core promise of DeFi.
• Community-owned: NETT token holders vote on upgrades. No centralized team making decisions behind closed doors.
• Levaged swaps: The ability to trade with up to 5x leverage is unusual for a small DEX and gives it a unique edge.

Cons of Netswap

• Very low liquidity: As of November 2023, Netswap’s 24-hour trading volume was just $23,700. That’s tiny. If you try to swap more than $100, you’ll likely get hit with 10-15% slippage. Large trades are practically impossible.
• Limited token selection: You can only trade tokens that have been bridged to Metis. That means fewer options than Uniswap or PancakeSwap. Stablecoins like USDT or USDC are scarce.
• No advanced trading tools: No limit orders. No stop-losses. No charting tools. It’s a simple swap interface. If you’re used to trading on Binance or Kraken, this will feel barebones.
• No official customer support: No email. No live chat. No help desk. If something goes wrong, you’re on your own. The Telegram group has over 2,000 members, but responses are slow and inconsistent.
• No public audit: The smart contracts have been verified on Etherscan, but there’s no third-party security audit. That’s a red flag for anyone concerned about risk.

Who Is Netswap For?

Netswap isn’t for everyone. It’s not a replacement for Binance or Coinbase. It’s not even a serious alternative to Uniswap.

It’s for one type of person: a small-scale trader who’s already using the Metis ecosystem and wants to swap tokens without paying high fees. If you’re holding METIS, ASTR, or other Metis-native tokens and you’re doing daily swaps under $50, Netswap saves you money and time.

It’s also for crypto natives who believe in community-run DeFi and want to support a project with fair token distribution. If you care about decentralization over liquidity, Netswap fits that mold.

But if you’re trying to trade $500 in ETH for USDC? Don’t. You’ll lose half your value to slippage. If you need stablecoin pairs or deep liquidity? Look elsewhere.

How Netswap Compares to Other DEXs

Security and Risks

Netswap’s architecture follows standard DeFi patterns. Your wallet stays in your control. Transactions are recorded on-chain. No one can freeze your funds. That’s good.

But security isn’t just about structure-it’s about audits and monitoring. Netswap’s contracts are verified, but there’s no published audit report from a firm like CertiK or OpenZeppelin. That’s a problem. In crypto, verification ≠ security. A smart contract can be correctly coded and still have hidden bugs.

There have been reports of failed transactions during network congestion. One Reddit user lost $75 because the interface didn’t warn them about rising gas costs. That’s a UI flaw, not a protocol flaw-but it’s still costly.

And because Netswap is so small, it’s not a target for big hacks. But that also means it doesn’t have the resources to monitor for subtle exploits. As one blockchain security researcher put it: “Small DEXs often do the basics right, but lack the budget to catch edge-case vulnerabilities.”

User Experience and Support

The interface is clean and simple. If you’ve used Uniswap, you’ll feel at home. Swap, approve, confirm. Done.

But the support system is nearly nonexistent. No email. No phone. No live chat. Only a basic FAQ and a Telegram group. If you mess up your slippage setting and lose money? No one’s coming to help.

User reviews are mixed. People love the low fees. They hate the lack of liquidity. One user wrote: “Great concept. Trading anything over $100 is practically impossible.” Another said: “I broke my $500 trade into five $100 chunks just to avoid 15% slippage.”

It’s not user-friendly for beginners. You need to understand gas, bridging, slippage, and wallet management. If you’re new to DeFi, start with a centralized exchange first.

Future of Netswap

Netswap has plans. Version 2 is coming in Q1 2024. It’ll include concentrated liquidity pools (like Uniswap v3), better leverage mechanics, and direct Ethereum-Metis swaps without needing the bridge.

The NETT tokenomics will also change. A buyback-and-burn mechanism was approved by governance voters in November 2023. That could reduce supply and potentially increase token value-if the project survives long enough to implement it.

But the odds are stacked against it. The top three DEXs on any L2 network capture 85-90% of volume. Netswap is fighting for scraps. Without a major liquidity incentive program-like token rewards for adding liquidity-it won’t grow.

Analysts rate its long-term viability as “low.” The Metis team believes it has a 50% chance of surviving 12 months. That’s not a vote of confidence. It’s a coin flip.

Final Verdict

Netswap is not a crypto exchange you should use unless you have a very specific need: you’re trading small amounts on the Metis network and want to save on gas fees.

It’s not a place to park your savings. It’s not a place to trade large sums. It’s not a place to find new tokens or do advanced trading.

But if you’re already on Metis, and you’re swapping $20-$50 of METIS for ASTR or other L2 tokens every few days? Netswap might be the cheapest, fastest option you’ve got.

It’s a niche tool. A micro-exchange. A community experiment. It’s not going to replace Uniswap. But for a small group of users, it does one thing better than anyone else: cheap, fast swaps on Metis.

If you’re curious, try it with $10. See how it feels. Don’t invest more than you can afford to lose. And never, ever trade more than $100 in a single swap.

The crypto world moves fast. Netswap could disappear next month-or it could become the backbone of Metis DeFi. Right now, it’s a gamble. But for the right user, it’s a gamble worth taking.