Token Types Explained

Native Tokens vs Contract Tokens

Every blockchain has a native token — the base currency used to pay gas fees and secure the network:

| Chain | Native Token | Ticker | |-------|-------------|--------| | Bitcoin | Bitcoin | BTC | | Ethereum | Ether | ETH | | BNB Chain | BNB | BNB | | Avalanche | Avalanche | AVAX | | Cosmos Hub | Cosmos | ATOM | | Polygon | Polygon | MATIC |

Contract tokens (like ERC-20s) are created on top of a blockchain using smart contracts. They share the chain's infrastructure but are separate assets.

For example, on Ethereum:

ETH is the native token (used for gas)
USDC, USDT, LINK, UNI are ERC-20 tokens (smart contracts on Ethereum)

You always need some of the chain's native token to pay gas fees, even when swapping contract tokens. This is the most common reason swaps fail — having USDC but no ETH for gas.

Token Standards

ERC-20 (Ethereum)

The most common token standard. Thousands of tokens are ERC-20s on Ethereum. The standard defines basic functions: transfer, balance checking, and approval for spending.

BEP-20 (BNB Chain)

BNB Chain's token standard — functionally identical to ERC-20. Many popular tokens exist on both Ethereum (as ERC-20) and BNB Chain (as BEP-20).

Other Standards

ERC-721 / ERC-1155 — NFT standards (non-fungible tokens). Not tradable on Swaptain
CW-20 — Cosmos-based token standard
SPL — Solana's token standard

Stablecoins

Stablecoins are tokens pegged to a stable value — usually $1 USD. They're essential for crypto trading because they let you "exit" to a stable value without leaving the blockchain.

Major Stablecoins

| Token | Type | Issuer | Available On | |-------|------|--------|-------------| | USDC | Fiat-backed | Circle | Ethereum, Polygon, Avalanche, Arbitrum, Base, BNB Chain | | USDT | Fiat-backed | Tether | Ethereum, BNB Chain, Tron, Avalanche, Polygon, Arbitrum | | DAI | Crypto-backed | MakerDAO | Ethereum, Polygon, Arbitrum, Optimism |

When you want to "take profit" or "de-risk" without converting to fiat currency, swapping to a stablecoin like USDC is the standard approach. It's like having a dollar balance on the blockchain.

Same Token, Different Chains

USDC on Ethereum and USDC on Avalanche are the same value but different tokens on different blockchains. They can't be sent directly to each other — you need a cross-chain swap (which is exactly what Swaptain does).

This is also why sending USDC on Ethereum to a BNB Chain address can result in lost funds — they're different networks.

Wrapped Tokens

Wrapped tokens are representations of one asset on another chain:

WBTC (Wrapped Bitcoin) — Bitcoin represented as an ERC-20 on Ethereum
WETH (Wrapped Ether) — ETH in ERC-20 format (needed for some DeFi interactions)

Swaptain uses THORChain for native cross-chain swaps, which means you trade real assets — not wrapped versions. When you swap BTC for ETH, you receive actual ETH, not WETH or another synthetic.

Meme Coins

Meme coins are tokens (usually ERC-20 or BEP-20) created around internet culture and community hype:

DOGE — originally a joke, now a legitimate UTXO blockchain
SHIB, PEPE, FLOKI — ERC-20 tokens on Ethereum

Meme coins and small-cap tokens carry higher risk. Many have low liquidity, extreme volatility, or may be scams. Always check the token's security rating in Swaptain before trading. Tokens rated "High Risk" or "Blocked" should be approached with extreme caution or avoided entirely.

How This Affects Your Trading on Swaptain

Native tokens can always be swapped directly via THORChain pools
ERC-20/BEP-20 tokens may have fewer routes or less liquidity
Gas fees are always paid in the chain's native token
Token security — Swaptain screens all tokens automatically and warns you about risky ones
Cross-chain — Swaptain handles the complexity of moving between different token standards and chains