Most crypto traders think of Uniswap or SushiSwap when they need a decentralized exchange. But if you’re trading small amounts on a chain with near-zero fees, Honeyswap might be the quiet tool you’ve been overlooking. Launched in September 2020, Honeyswap isn’t trying to beat Uniswap in volume. It’s built for a different kind of user - someone who wants to swap tokens without paying $5 in gas fees just to trade $50 worth of crypto.
What Is Honeyswap?
Honeyswap is a decentralized exchange (DEX) built on the Gnosis Chain (formerly xDai Chain), a sidechain of Ethereum designed for fast, cheap transactions. It’s a fork of Uniswap V2, meaning the core mechanics - liquidity pools, automated market making, and no order books - are familiar if you’ve used other DEXs. But Honeyswap adds two key twists: community governance and a dual-token reward system.It’s run by the 1Hive DAO, a community of developers and crypto enthusiasts who hold the HNY token. This token gives holders voting power on upgrades, fee changes, and treasury use. Unlike centralized exchanges, there’s no CEO, no customer support hotline, and no KYC. You control your keys. That’s the trade-off: freedom, but also responsibility.
How Honeyswap Works
Every trade on Honeyswap carries a 0.30% fee. Here’s how it breaks down:- 0.25% goes to liquidity providers (LPs)
- 0.05% goes to the protocol’s treasury
- 1/12 of the protocol’s fee (about 0.004%) is distributed in HNY tokens
- Another 1/12 (same amount) is distributed in Comb tokens, a local reward token tied to Gnosis Chain activity
This dual-token system is unique. HNY is the global governance token. Comb is a local incentive - it rewards users who trade on Gnosis Chain specifically. It’s designed to keep activity alive on the chain even when volume is low.
To use Honeyswap, you need a wallet connected to the Gnosis Chain. MetaMask, WalletConnect, and Fortmatic all support it. If you’re coming from Ethereum Mainnet, you’ll need to bridge your tokens using the official xDai bridge. This isn’t automatic - you have to manually send ETH or ERC-20 tokens from Ethereum to Gnosis Chain. It takes a few minutes and costs less than $0.10.
Supported Tokens and Liquidity
As of early 2026, Honeyswap supports 26 tokens and 40 trading pairs. The most popular pairs are HNY/DAI, WETH/DAI, and COMB/DAI. You won’t find the latest meme coins or obscure altcoins here. The selection is small but stable - focused on tokens already used in the 1Hive ecosystem.Liquidity is the biggest limitation. Total Value Locked (TVL) across Gnosis Chain and Polygon sits at just over $1 million. Compare that to Uniswap’s $10 billion, and you’ll see why slippage can be an issue. For trades under $2,000, slippage is usually under 0.5%. For anything over $5,000, it can jump to 2% or more. That’s why Honeyswap isn’t for big traders. It’s for micro-transactions - paying for DeFi services, swapping stablecoins for gas, or testing new tokens without risking high fees.
Why Use Honeyswap?
The only real reason to use Honeyswap is cost. On Ethereum Mainnet, swapping tokens can cost $3-$15 in gas. On Gnosis Chain, it’s $0.01-$0.05. That’s 100x cheaper. If you’re doing frequent small trades - say, swapping DAI for USDC every week to rebalance your portfolio - Honeyswap saves you real money.It’s also one of the few DEXs that rewards users with a governance token just for trading. Most DEXs only pay LPs. Honeyswap pays traders too, through HNY and Comb. That’s rare. It’s a way to bootstrap community participation without relying on venture capital.
Security is solid. The smart contracts were audited by CertiK in 2023 and haven’t had any exploits since. The code is open-source on GitHub. No major bugs, no rug pulls. That’s more than you can say for some newer DEXs.
Where It Falls Short
Honeyswap isn’t for everyone. Here’s where it struggles:- Low volume: Daily trading volume hovers around $31,000. That’s less than 0.001% of Uniswap’s. You won’t find deep markets here.
- Minimal revenue: The protocol collects about $20,000 a year in fees. None of it goes to HNY holders. The treasury is used for grants and community bounties, not token buybacks or dividends.
- Complex setup: New users often get stuck bridging tokens or selecting the wrong network. There’s no clear ‘get started’ guide.
- Slow updates: Since it’s DAO-governed, upgrades take weeks or months. If you want new features tomorrow, you’re better off with a centralized exchange.
- Weak support: Support is entirely community-run. Discord and Reddit are your only options. Response times are 12-24 hours. Don’t expect live chat or email help.
Users on Cryptogeek give it a 3.0/5 rating based on just two reviews. Trustpilot reviews from 2024 mention frustration with slippage and lack of token variety. FxVerify reports only 1,300 monthly visits - lower than most niche DEXs.
Honeyswap vs Other DEXs
| Feature | Honeyswap | Uniswap (Ethereum) | SushiSwap (Polygon) | Curve (Ethereum) |
|---|---|---|---|---|
| Chain | Gnosis Chain, Polygon | Ethereum Mainnet | Polygon | Ethereum Mainnet |
| Avg. Gas Fee per Swap | $0.02 | $5-$15 | $0.10-$0.50 | $5-$12 |
| 24-Hour Volume | $31,000 | $1.2B | $85M | $450M |
| TVL | $1.04M | $10B | $1.8B | $5.2B |
| Token Rewards for Traders | Yes (HNY, Comb) | No | Yes (SUSHI) | No |
| Best For | Micro-transactions, low-cost swaps | High-volume trading, major tokens | Mid-volume, low fees on Polygon | Stablecoin swaps |
Honeyswap’s only real competition is other Gnosis Chain DEXs - but there aren’t many. SushiSwap has a presence there too, but it doesn’t have the same dual-token incentive. Honeyswap’s niche is clear: the cheapest place to trade on a secure, Ethereum-compatible chain.
Who Is Honeyswap For?
Honeyswap is perfect if you:- Trade small amounts regularly ($10-$2,000 per swap)
- Use Gnosis Chain for other DeFi apps (like 1Hive’s voting platform)
- Want to earn HNY tokens without staking or providing liquidity
- Live in a region with high crypto adoption (North America, Europe, Southeast Asia)
- Prefer community-run projects over VC-backed ones
It’s not for you if you:
- Trade over $5,000 at a time
- Need instant customer support
- Want the latest tokens or meme coins
- Expect high liquidity or tight spreads
Future Outlook
Honeyswap is expanding. In 2025, it added Polygon support. Plans are underway to launch on Arbitrum and other EVM chains. That could bring in more users - but it also dilutes its uniqueness. If it becomes just another DEX on 5 chains, it loses its identity as the low-cost Gnosis Chain specialist.The big question is sustainability. With only $20,000 in annual fees, the DAO can’t hire full-time developers. It relies on volunteers and small grants. If Gnosis Chain doesn’t grow, Honeyswap won’t either. But if Ethereum L2s keep improving, and users start seeking cheaper alternatives, Honeyswap could become a model for how small, community-driven DEXs survive.
For now, it’s a quiet tool in a noisy space. It doesn’t shout. It doesn’t promise moonshots. It just lets you trade without breaking the bank.
Is Honeyswap safe to use?
Yes, Honeyswap is considered safe. Its smart contracts were audited by CertiK in 2023 and have remained uncompromised since launch. It’s non-custodial, meaning you hold your own keys. However, like all DEXs, you’re responsible for your own security. Always double-check network settings and never share your seed phrase.
Can I earn HNY tokens just by trading?
Yes. Honeyswap allocates 1/12 of every swap fee to HNY token rewards. That means even if you’re not providing liquidity, every trade you make earns you a small amount of HNY. It’s a rare feature among DEXs - most only reward liquidity providers. This encourages active trading and helps distribute governance power more widely.
How do I connect my wallet to Honeyswap?
First, make sure your wallet (like MetaMask) is set to the Gnosis Chain network. If you’re on Ethereum Mainnet, you’ll need to switch. Then, go to honeyswap.org and click ‘Connect Wallet’. Select your wallet provider - MetaMask, WalletConnect, or Fortmatic. Once connected, you can start trading. If you don’t have Gnosis Chain tokens, use the official xDai bridge to move funds from Ethereum.
Why is Honeyswap’s volume so low?
Honeyswap’s volume is low because it operates on a sidechain with limited user adoption. While Gnosis Chain is cheap, it’s not as widely used as Ethereum or Polygon. Most traders still use larger chains for better liquidity. Honeyswap’s user base is small - around 1,300 monthly visits - so volume stays low. It’s not a failure; it’s a trade-off for ultra-low fees.
Should I use Honeyswap instead of Uniswap?
Only if you’re doing small trades and want to avoid high gas fees. If you’re swapping $100 or less, Honeyswap saves you money. If you’re trading $10,000 or more, Uniswap’s deeper liquidity and tighter spreads make it the better choice. Use Honeyswap for micro-transactions. Use Uniswap for serious trading.
Honeyswap is the quiet hero of DeFi, y’all 🤫 I’ve been swapping DAI for USDC every Monday like clockwork, and my gas fees used to eat my lunch. Now? $0.02. I feel like I’m stealing from the system. And getting HNY just for trading? That’s not a feature-it’s a gift. The DAO’s got heart, not just code. I don’t need a CEO to tell me what to do-I just need a wallet and a vibe. This is how crypto was supposed to be before the VCs showed up with their pitch decks and their 10x promises. Honeyswap doesn’t scream. It whispers. And honestly? I’m listening.
Been using Honeyswap for 6 months now-mostly for small swaps between stablecoins. Super reliable. Bridging from Ethereum is a one-time hassle, but after that? Smooth sailing. The Comb token rewards are a nice touch too-keeps me coming back even when I’m not actively trading. If you’re on Gnosis Chain for other DeFi stuff, this is the natural next step. No drama, no hype. Just cheap, clean swaps.