Exodus Swap very slow, how does it work ?

[alley]

I just tested the Exodus SWAP feature from BTC to USDT to see if it performs as well as exchanges like Kraken or Binance. I noticed it takes quite a long time to complete the swap, so it’s definitely not a viable option for larger swaps.

Does anyone know why it takes so long with an Exodus wallet? What’s actually happening in practice that makes it so much slower compared to real-time execution on major exchanges?

 

[Martin Everson]

Exodus probably uses an on-chain exchange method i.e they are really doing an exchange on the blockchain and wait for 2 BTC confirmations before swapping and sending you USDT. BTC confirmations take long in general - from minutes to hours.

A normal centralized exchange like Kraken or Binance does not use on-chain exchanges so when selling BTC for USDT no transaction is sent to the blockchain. Rather an off-chain exchange takes place in the exchanges internal ledger via its own internal liquidity pool so transactions can be made instant and also cheaper. Oherwise you would be waiting from minutes to hours for everysingle transaction you do to be confirmed as you do with Exodus.

If you were to use Trust Wallet for example you would actually be able to see the intermediaries that are used and a more transparent view of what is happening when you do a cross chain exchange "on-chain" as opposed to "off-chain" like Kraken and Binance etc.