How to use Katana Guide: How to convert SLP to AXS and AXS to SLP (2024)

Katana, the Ronin Decentralized Exchange (DEX), has just launched. Here is our quick and easy Katana guide to help player traders understand how to trade SLP and AXS to USDC and WETH, and vice-versa. Here's how to trade SLP, how to trade AXS, and how to make use of Katana Ronin DEX as part of your play-to-earn journey withAxie Infinity.

What is Katana, Ronin DEX?

We should start off our Katana Guide by clarifying what Katana is and what Katana isn't. Katana, as the Ronin DEX, allows for the trade ofAxie Infinity-related coins for more mainstream accepted coins, such as the ERC-20 ETH variant WETH as well as the stable coin USDC. By using its own decentralized exchange, Ronin Wallet users minimize their transactional costs when converting their AXS and SLP to other currencies. This also effectively introduces both an AXS and SLP sink – allowing for a healthier ecosystem overall. However, the inverse is also true – that the Katana Ronin DEX also introduces a way for players to obtain AXS and SLP outside of the game.

What Katana isn't is a marketplace for AXS and SLP. You cannot directly purchase any cryptocurrency using real-world money through Katana. Our Katana Guide does not include ways to convert your AXS and SLP to USD or any other currency. The closest to this is trading your AXS and SLP to USDC, a stable coin that has a set exchange rate of 1 USDC = 1 USD. To be able to purchase AXS and SLP with your real-world cash, you'll have to purchase WETH or USDC through other exchanges, then transfer your WETH or USDC to your Ronin Wallet. Only then will you be able to use your WETH or USDC for transactions in the Ronin Ecosystem.

Setting up your Ronin Wallet

If you still haven't the first step here is setting up your Ronin Wallet on your browser. Having a Ronin Wallet is a pre-requisite for anyone playingAxie Infinity, so we fully expect anyone reading this to already have this setup. Regardless, we're including this step in our Katana Guide just in case some people attempts to do their Katana transactions on a separate device from the one they usually use to playAxie Infinity. In any case, this is a first step that we won't elaborate on further – but instead serves as a reminder to players that setting up a Ronin Wallet on your browser is necessary to use Katana and to trade SLP and AXS.

How to use Katana – How to trade SLP and how to trade AXS on your browser?

Thankfully, Katana Ronin DEX is painlessly easy to use. You simply have to head to the Katana Interface on your browser (remember, the browser should have your Ronin Wallet setup). Here, you can do one of three things:

1. Swap– this is where you trade your SLP and AXS to WETH, USDC, and later on, RON and WRON.
2. Pool– here, you can stake your crypto coins to contribute to the Ronin DEX's liquidity – this allows for seamless transactions on the network by using your currency as placeholders for transactions in the ecosystem.
3. Farm– here, you can farm RON using the LP tokens you receive for pooling your crypto coins. This allows you to earn WRON over time as a reward for investing in Katana and by helping it maintain liquidity, and for the long-term staking of the relevant cryptocurrencies.

You can swap between these three functions of Katana just by clicking on the appropriate tab above. You can also check your earning analytics by clicking Analytics above, as well as review documentation by clicking Docs. However, we won't be covering those in our Katana Guide.

Swap – How to trade SLP and AXS on Katana Guide

Swapping is fairly straightforward once you have your Ronin Wallet connected. You simply choose which token you own you want to convert to other tokens, and then select which other token you want to get in exchange. You can select SLP, AXS, WETH, and USDC, but you can also trade RON and WRON once it becomes available in the future.

Once you've selected your trade-in and trade-out tokens, you'll then have to enter how much of your trade-in token you'd like to swap. The interface will show the estimated dollar value of the tokens you are trading, as well as the exact amount of trade-out tokens you'll be getting. It also shows the current exchange rate between the two tokens. Katana Interface collects a 0.03% market fee, which is then used to reward Katana Liquidity Pool contributors. It also shows slippage tolerance and the minimum amount obtained. Once you click Swap, the Ronin Wallet will pop-up to confirm the transaction. Click confirm to finalize the transaction.

What is Pooling and how do you Pool on Katana?

The Liquidity Pool is the pool of assets collectively provided by Ronin users to allow seamless transactions to take place on the Katana Interface. To put it simply, imagine the Liquidity Pool as a middle man. The Liquidity Pool eliminates the necessity to trade your assets to other players directly. Gone are the days of trading with message board titles like “LFT: W>AXS, H>SLP”. By having a pool of assets, the Katana Interface allows players to trade their assets from their wallets to assets in the pool.

As a user of Ronin, it is in your best interest that the Katana Interface is fully liquid at all times. However, this won't happen all by itself, and it will need the participation of the community to keep itself liquid. To do this, Ronin users will have to contribute to the Katana Liquidity Pool through a process called pooling. Before you can pool, however, you'll first have to deposit assets to your Ronin Wallet. You do this through an external exchange such as Binance.

Pooling might seem complicated at first, and Sky Mavis' guide's thorough explanation could intimidate players who are pooling for the first time. Hence, in this Katana Guide, we'll explain things in an overly simplified manner.

By pooling, you will be providing two assets to the Liquidity Pool. This equates to an asset pair you'd be supporting. For example, if you're going to pool for the AXS/ETH pool, then you'll have to contribute both AXS and ETH. The amount of AXS and ETH you'll contribute should have equal values. “For example,” reads Sky Mavis' guide, “let say the current value of ETH is USD 4,000.00 and the value of AXS is USD 100.00; and you would like to provide 1 ETH into the ETH-AXS pool, you'll also need to provide 40 AXS as the pair.”

Your contributed amounts will help make AXS to ETH transactions (and vice-versa) liquid, meaning players will get to trade the two assets seamlessly on the platform, thanks to you. As a reward, contributors will earn a collective 0.03% transactional fee for each transaction done on the Katana Interface.

Over time, your pool will earn you assets back, which you can take away any time you want. In the meantime, your pool also grants you Liquidity Provider tokens (LP), which represent the share of each pool you provide. LP can be used for Farming, which is explained in the next section. Do note, however, that pooling is essentially an investment, and can also lead to losses if the value of your associated tokens drops. Invest at your own risk.

Katana Farming Guide – How to make your LP earn you more assets?

The LP you get for pooling your assets can be used to farm RON, the future crypto currency coin that will be native to the Ronin Blockchain. Right now, transactions cost 0 RON, but future trades will cost RON, which makes farming for RON today a great incentive for players to pool their currencies. Since AXS, SLP, WETH, and USDC can be earned outside the Ronin ecosystem, there needs to be a coin that exists only in the Ronin blockchain. This will ensure that Ronin will be self-sufficient in the long term.

You can start farming for RON by going to the Farm tab on top. Here, you can select which LP token pair you'd like to use for farming. If you followed the instructions above and did pool for AXS/ETH, then you can farm using your AXS/ETH LP. Then, you'll only have to stake any amount of LP you currently have in your wallet to have it farm for RON. Just like pooling, you can always withdraw your LP any time you're done farming for no additional costs.