Module 2 / Gas, transactions & DEXes
Module 2 · On-chain

Gas, transactions & DEXes

How transactions actually settle, and what you pay for.

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Gas & transaction fees

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Every on-chain action consumes gas — a unit of computational work. Your fee is `gas used × gas price`, and the gas price floats with network demand. The same swap is cheap at 3am and brutal during a hyped mint.

Fee = Gas used × (Base fee + Priority fee) Base fee: set by the protocol, burned Priority fee: your tip to be included sooner
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Recall

Your transaction fee scales with…

AMMs & how DEX prices form

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Most decentralized exchanges don't use an order book — they use an automated market maker (AMM). A pool holds two assets and prices them by a formula (classically `x · y = k`). Your trade moves along that curve, so larger trades get worse prices — that's slippage, baked into the math.

Constant product: x · y = k Price = y / x (ratio of reserves) Bigger trade → bigger move along the curve → more slippage
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Recall

In a constant-product AMM, larger trades…