MinSwap: UTxO Balance Insufficient Issue, What to do?
MinSwap stands as one of the prominent decentralized exchanges operating on the Cardano blockchain, which shares similarities with Ethereum as a proof-of-stake (PoS) blockchain. The ecosystem on the Cardano blockchain has its own sets of wallets. Nami Wallet is one of the popular wallets used on the Cardano blockchain’s ecosystem.
ADA, the native token of Cardano, serves as the fuel on the Cardano platform, utilized for collateral and transaction fees. Additionally, Minswap introduces its governance token called Min, which can be earned through yield farming activities on the Minswap platform.
While engaging with token swaps on the Minswap platform, numerous users encounter issues such as UTxO insufficient balance errors. This article specifically aims to provide guidance on resolving UTxO errors, describing potential approaches for addressing such challenges.
What is UTxO?
The UTxO, short for Unspent Transaction Output, is a foundational concept widely utilized in blockchain technology for its simplicity. Within the system, transactions are depicted as inputs and outputs, serving as the initiating and concluding components of each transaction.
Every input references a prior unspent output, while the outputs denote the new ownership of the cryptocurrency being transferred. Through the UTxO model, the blockchain effectively monitors ownership and value transfer.
In essence, UTxOs play a vital function in the operation of UTxO-based cryptocurrencies, facilitating secure and transparent transaction handling on the blockchain.
Why does a UTxO Balance Insufficient Error Occur?
The “UTxO Balance Insufficient Issue” typically arises when a user lacks the necessary funds to complete a swap transaction on a decentralized exchange.
When engaging in token swaps that involve smart contracts, collateral becomes crucial. Users must set a collateral amount if they wish to proceed with a swap relying on smart contracts.
In such cases, Nami Wallet advises setting a collateral of at least five ADA. The presence of collateral is necessary for transaction execution. However, if there is an insufficient amount of ADA available for collateral in the user’s wallet, a UTxO error occurs during the swap process.
Additionally, users often overlook the fact that transaction fees are deducted from the ADA balance. Consequently, their assumption of the available balance for transfer is typically lower than the required fees for successful processing.
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So it straightly means that the users may not have enough tokens available to initiate the swap.
Ways to Resolve the UTxO Balance Insufficient Issue
- Increase the deposited funds: Users often have an insufficient amount of funds, which falls below the officially required threshold for transactions. To prevent encountering errors during transactions, it is advised to deposit funds beyond the minimum required amount.
- Set appropriate collateral fees: As mentioned, collateral holds significant importance in UTxO blockchain technology for the successful completion of transactions. Hence, it is crucial to carefully determine and set the correct amount of collateral within your dedicated wallet.
- Consider Transaction Fees: Often, users overlook the fact that transaction fees are incurred in ADA. It is therefore advised to the users to consider that a portion of the ADA in their possession will be utilized as transaction fees.
- Check Network Congestion: As the platform is still in its early stages, it is prone to experiencing network congestion problems caused by a high stream of users. In such instances, it is recommended to patiently attempt the transaction again after some time has passed following the initial error.
- Swap alternative trading pairs: Users often encounter a lack of adequate balance to swap a particular token. In such situations, it is better to consider alternative trading pairs where they possess sufficient tokens. This approach enables users to verify if their balance truly falls short or not.
Hence, these are some of the remedies you can try to get rid of the UTxO Balance Insufficient errors in MinSwap.
Final Thought
Prior to resolving the said issues, it is essential to examine and consider the aforementioned measures. It is recommended to perform a precalculation of the ADA quantity present in your wallet before initiating the swap process.
Users are advised to consult the official documentation and support resources offered by Minswap if the aforementioned steps do not yield satisfactory results. They can effectively navigate and get around any difficulties they encounter by following the instructions mentioned there in the documents and getting the help they need.
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