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Exact out Swap

Definition

An exact out swap is a type of decentralized exchange transaction where the user specifies the precise amount of the output token they wish to receive. In contrast to an “exact in” swap, where the input amount is fixed, an exact out swap determines the necessary input amount of one asset to acquire a desired fixed quantity of another. This transaction type is particularly useful when a user requires a specific amount of a token for a subsequent operation or payment. Decentralized finance protocols calculate the required input based on current liquidity and exchange rates, accounting for potential slippage.