---
updatedAt: 2026-08-07T01:51:40.000Z
agentTools:
  projectIndex: https://docs.onechain.nexus/llms.txt
---

# How Swapping Works

# How Swapping Works

Gametoken swaps run on **Forge**, the on-chain market engine for game tokens. Instead of matching buyers and sellers in an order book, each game token has a **Forge liquidity pool** paired with **ONEUSD**, and you trade directly against that pool. See [ONE Forge](/docs/cross-forge) for more on the engine.

## Forge pools & virtual reserves

Forge pools use **virtual reserves**, so a pool can quote a price from the moment a token launches, even before much real liquidity has built up. Real ONEUSD and tokens flow in and out as people trade. The **virtual reserves** are part of the pricing curve and are not withdrawable liquidity.

* Trades occur **against the pool**, not between users.
* Price comes from the pool's reserves, not a fixed quote. It updates with every trade.

## Price impact

A swap that is large relative to the pool's liquidity moves the price more. This is **price impact**. The **Rate** in the trade panel is the rate your swap would actually execute at, so comparing it with the token's current price shows you the impact before you confirm.

```
Price Impact (%) = | (executionPrice − poolPrice) / poolPrice | × 100
```

The deeper a pool's liquidity, the lower the price impact for the same trade size. If the expected price impact exceeds your slippage tolerance, Gametoken warns you before the swap proceeds. See [Swap Settings & Protections](/docs/limit-martket-order).

## Immediate settlement

Because you trade against a pool rather than another person, there is **no waiting for a counterparty**. A swap either fills immediately within your slippage tolerance, or it reverts. Nothing is left resting on a book.

> Forge does not guarantee liquidity depth, price stability, or continuous demand. Every swap is your own signed, on-chain transaction, verifiable on the block explorer.