This year, Defi has been a prominent type of DApp. Decentralized cryptocurrency exchanges such as PancakeSwap and Uniswap experiencing tremendous growth in terms of customers and trading volume.
Decentralized exchanges provide a different approach to trading crypto assets forgoing the order book system of centralized exchanges and instead employing liquidity pools for each pair.
This makes it possible for users to deposit tokens into the pool and receive a different token from the pool in return without a centralized entity being involved.
While liquidity pools come with their own issues. They offer a way for people to trade cryptocurrencies without the need for a middleman.
A frequent issue encountered by those who use decentralized exchanges such as Uniswap and Pancakeswap is the “insufficient liquidity for this trade” error.
This can occur due to a large number of trading pairs created daily and the high demand to buy and sell these tokens.
If you are currently going through this issue. Then this article will provide you with an explanation of how to fix it and the potential causes of it.
How Does “Insufficient Liquidity For This Trade” on PancakeSwap & Uniswap Work?
Before we explain how to resolve the “insufficient liquidity for this trade” issue you need to comprehend its meaning and why it arises when attempting to exchange one token for another on platforms such as PancakeSwap or Uniswap.
Decentralized exchanges enable traders to swap one token for another through liquidity pools.
To be able to trade a token on an exchange such as PancakeSwap or Uniswap, the developer(s) need to set up a liquidity pool that contains a specific amount of two tokens, like BNB and SafeMoon for the BNB/SafeMoon pair, and so on.
When one exchanges one token for another. It adds the amount of the swapped token to the liquidity pool while deducting the amount of the other token from the pool.
This activity, done by many users is what eventually shapes the cost of the token. As such. The ‘Insufficient Liquidity for this trade’ error implies that there is not enough liquidity for the token to trade.
A key factor causing this error to pop up is when one attempts to trade a token on a different exchange version (such as PancakeSwap or Uniswap) when the token has not been migrated to that specific version.
For instance, if someone is trying to swap a token that was only added to the PancakeSwap v1 exchange on the PancakeSwap V2 exchange
Then they will end up receiving an “insufficient liquidity for this trade” error because there is no liquidity present for the particular trading pair on that version of PancakeSwap. The same principle applies to Uniswap.
PancakeSwap & Uniswap: How to Fix “Insufficient Liquidity For This Trade”
Now that you are likely aware of what the “insufficient liquidity for this trade” error entails, it is time to discover how to deal with this issue.
Unfortunately, there is no definite answer as to why the “insufficient liquidity for this trade” issue occurs on PancakeSwap or Uniswap since it can have a range of causes. However. The following techniques can help to rectify this error.
Fix 1: Use an older version of Exchange Liquidity
The most effective remedy for resolving the “insufficient liquidity for this trade” error on PancakeSwap and Uniswap is to revert to an earlier version of the exchange where the token has liquidity.
PancakeSwap’s V2 version is the latest version by default while Uniswap is utilizing the V3 version as its default.
If you attempt to swap tokens launched on previous versions of either exchange with the new versions, you will receive an error. To resolve this you might need to switch back to an earlier version.
To transition from PancakeSwap V2 to V1, follow these steps:
Step 1: Visit the PancakeSwap exchange website at [PancakeSwap.finance].
If you have a Trust Wallet, go to the [DApps] section and select [PancakeSwap]. Struggling to locate the DApps browser in your Trust Wallet? Refer to our guide on how to activate the Trust Wallet DApps browser.
Step 2: PancakeSwap’s wallet integration
Select the [Connect Wallet] option on PancakeSwap and press [Connect] to confirm the connection with Trust Wallet.
Step 3: Changing from V2 to V1
Go to the bottom of the page and choose [V1 (old)] to transition from PancakeSwap V2 to PancakeSwap V1.
Check the box labeled “I understand that V1…” and then click “Continue to V1 Anyway”.
Step 4: Set up your wallet again
Click [Unlock Wallet] and choose your wallet. If you’re using Trust Wallet, pick [Trust Wallet] from the list, or else select your wallet from the available options.
Finally, press [Connect] to permit the connection and perform the token swap on PancakeSwap’s V1 version.
To change the version of Uniswap, add either “?use=V2” or “?To switch to the V2 or V1 version, add “use=V1” to the end of the URL.
Here are the complete URLs for updating your version on Uniswap.
- Go to the standard web address (https://app.uniswap.org/#/swap) to access Uniswap’s V3 version, its default version.
- To use Uniswap V2, please follow this link – https://app.uniswap.org/#/swap?use=V2.
- To use Uniswap version 1, please visit the following URL: https://app.uniswap.org/#/swap?use=V1.
Click on [Connect Wallet], then tap [Connect] to approve the link.
Fix 2:Expand Slippage Tolerance
In many cases, a possible solution is to raise the slippage tolerance to 10% or more. This could remedy the “insufficient liquidity for this trade” error if altering the exchange version did not work.
To enhance the resistance to slippage on PancakeSwap, these steps should be followed:
Switch back to the most current version of either PancakeSwap (V2) or Uniswap (V3).
Step 1: Click here to visit the PancakeSwap exchange website .finance]
If you have a Trust Wallet, you can employ the DApps browser to access PancakeSwap. Additionally, select [Connect Wallet] and approve the connection request if it’s not yet linked to your wallet.
Step 2: Click the settings icon.
Step 3:Adjust the slippage tolerance.
Input “12” into the “Slippage Tolerance” field to raise the slippage tolerance to 12%.
If an error appears saying “Your transaction may be front run” disregard it and close the dialogue by clicking the “X” in the upper right corner. Afterward. Retry swapping the token and the error should usually no longer be displayed and the transaction should be successful on PancakeSwap.
Using Uniswap? This guide will help you raise your slippage allowance.
Note: Remember to switch back to the most up-to-date version of Uniswap before executing this.
Step 1: Visit the [https://app.uniswap.org/#/swap] Uniswap exchange page.
Click on [Connect Wallet] and if it is not already linked to Uniswap approve the association.
Step 2: Click the settings icon.
Step 3: Enter your tolerance for slippage
Set the slippage tolerance to 10% by entering the number “10”.
Similar to PancakeSwap. You will be presented with a warning saying “The transaction may be frontrun”, but don’t worry about it and just tap somewhere on the screen to close the dialog.
Then, try swapping your token again and you should be able to complete the transaction on Uniswap.
Fix 3: Switch Networks
In some scenarios, your online connection may be responsible for the “insufficient liquidity for this trade” issue on PancakeSwap. So try altering it to determine if it fixes the problem.
If you have access to a wireless network, you should alternate between it and your cellular network. Furthermore. If you are on your cellular network and you do not have access to a WiFi connection,
You can try to switch to your alternate mobile network (for phones with multiple SIM cards) and attempt to exchange the token on any of these exchanges.
If you are utilizing a VPN, deactivate it and try to switch your tokens once more. Numerous individuals have expressed that this strategy tackled the mistake on their gadget following a wide range of different strategies
So it could also tackle the issue on your end.
Fix 4: Just wait and contact the token developers.
Pausing for a few minutes and retrying has a chance of resolving the insufficient liquidity issue with Pancakeswap and/or Uniswap. Even though it may seem humorous.
If there is a great deal of activity in the market, with many people depositing and withdrawing from the token pair’s liquidity pool it is possible that occasional glitches may occur (although rarely). In such cases, waiting a few minutes and then attempting the swap again may resolve the issue.
Try connecting with the creators of the token you need to exchange (or from). Telegram, Reddit, and Twitter are the most practical ways to contact them as they are regularly active on these websites.
The contact details of the developers of a token can be obtained from CoinMarketCap, BSCScan/EtherScan, and the token’s website.
Fix 5: Try a Different Exchange
If the initial exchanges do not work to your satisfaction, try other exchanges that have the specific cryptocurrency you are hoping to swap.
Alternatives to PancakeSwap that are based on the Binance Smart Chain include Bogged. Finance. Biswap.org, DODO Exchange, Binance DEX, and more.
Other alternatives to Uniswap that are worth exploring include 1NCH. TraderJoe. dYdX Exchange. SushiSwap, HoneySwap, and more.
That concludes our explanation of the solutions for the “Insufficient Liquidity For This Trade” issue on PancakeSwap or Uniswap. We trust that the repairs mentioned in this article have been of help in addressing this problem.
If all the fixes suggested in this article fail to solve the error, it is likely that the token you are trying to purchase has been removed from circulation (a phenomenon known as ‘rug pulling’).
Sadly, it is not possible to exchange your coins back to BNB, ETH, or other digital currencies if the project has been Rug Pulled by its developers.
However, if you are facing this issue despite the fact that the project is still active, you can connect with PancakeSwap through their Telegram community chat and subreddit (r/Pancakeswap).
Additionally, the official Discord chatroom for Uniswap can be found on their website and there is also a Reddit page (r/Uniswap) if you are using their platform.
- What is Insufficient Liquidity?
Answer: Insufficient Liquidity is a situation in which there are not enough liquid assets available to cover the liabilities of a business or an individual.
- How does Insufficient Liquidity affect a business?
Ans: Insufficient Liquidity can cause a business to suffer from a lack of cash flow and capital, which can lead to difficulties in meeting short-term obligations and long-term goals.
- What are the warning signs of Insufficient Liquidity?
Ans: Warning signs of Insufficient Liquidity include decreasing cash reserves, delays in payment from customers, increased debt-to-equity ratios, and a growing number of accounts receivable.
- What should businesses do if they face Insufficient Liquidity?
Answer: Businesses should take proactive steps to reduce their financial risks, such as increasing their cash reserves, reducing expenses, and renegotiating terms with suppliers and creditors.