Honeyswap Crypto Exchange Review: Low-Cost DEX for Gnosis Chain Users

Most crypto exchanges charge high fees, especially when you’re trading small amounts. If you’ve ever tried swapping tokens on Ethereum and got hit with $20 in gas fees for a $50 trade, you know the frustration. That’s where Honeyswap comes in - a niche decentralized exchange built for low-cost, everyday trading on the Gnosis Chain. It’s not the biggest player in crypto, but for certain users, it’s one of the few options that actually makes sense.

What Is Honeyswap?

Honeyswap is a decentralized exchange (DEX) that launched in September 2020. Unlike centralized platforms like Binance or Coinbase, it doesn’t hold your funds. You trade directly from your wallet using smart contracts. It’s built as a fork of Uniswap V2, which means if you’ve used Uniswap before, the interface will feel familiar.

The key difference? Honeyswap runs on the Gnosis Chain (formerly xDai), a sidechain of Ethereum designed for cheap and fast transactions. Gas fees here are fractions of a cent, not dollars. This makes it ideal for micro-transactions - swapping $10 worth of tokens without worrying about the fee eating up half your trade.

It’s governed by the 1Hive DAO, meaning decisions are made by token holders, not a company. The native token, HNY (Honey), gives users voting power. There’s also a local token called Comb, used to reward liquidity providers on specific chains.

How Honeyswap Works

Honeyswap uses the same automated market maker (AMM) model as Uniswap: liquidity pools instead of order books. When you swap tokens, you’re trading against a pool of funds locked by other users. In return, those users earn a share of the trading fees.

The fee structure is simple: 0.30% per trade. Of that:

• 0.25% goes to liquidity providers
• 0.05% goes to the protocol

Here’s the unique part: 1/12 of the protocol’s 0.05% (about 0.004%) is distributed as HNY tokens. Another 1/12 goes to Comb tokens on the Gnosis Chain. This dual-token system rewards both global governance participation and local liquidity.

You can trade 26 tokens across 40 pairs as of 2025, including DAI, WETH, USDC, and native Gnosis Chain tokens. The platform also supports Polygon, with plans to expand to Arbitrum and other EVM chains. All connections use OmniBridge for cross-chain transfers.

Performance and Liquidity

Honeyswap’s numbers are modest. As of late 2025, its total value locked (TVL) sits at around $1.04 million - $950,000 on Gnosis Chain and $95,000 on Polygon. Compare that to Uniswap’s $10 billion+, and you’ll see Honeyswap isn’t trying to compete on scale.

Its 24-hour trading volume averages $31,000-$32,000. That’s less than 0.001% of Uniswap’s daily volume. For context, if Uniswap is a highway, Honeyswap is a quiet backroad.

But here’s why that’s okay: low volume means less slippage for small trades. If you’re swapping $100 or $500, you’ll likely get a clean price. For trades over $5,000, slippage can jump above 2%, which is a red flag. So Honeyswap isn’t for large investors - it’s for regular users making frequent, small swaps.

The bid-ask spread is around 0.662%, which is higher than top-tier DEXs but acceptable given the low fees. Liquidity is thin, but it’s intentional - the platform targets users who value cost over depth.

Security and Audits

Honeyswap’s smart contracts have been audited by CertiK, a well-known blockchain security firm. That’s a good sign. No major exploits have been reported since launch.

Since it’s non-custodial, you control your keys. No KYC, no identity checks. That’s a plus for privacy, but it also means there’s no customer support if you send funds to the wrong address. You’re on your own.

The platform runs on EVM-compatible chains, which are battle-tested. Gnosis Chain has been stable for years, and Polygon’s infrastructure is solid. The real risk isn’t hacking - it’s user error or misunderstanding the dual-token system.

How to Use Honeyswap

Using Honeyswap is straightforward if you’re used to MetaMask and other DEXs. Here’s how:

1. Install MetaMask or WalletConnect.
2. Add the Gnosis Chain (xDai) network manually: Network Name: Gnosis, RPC URL: https://rpc.gnosischain.com, Chain ID: 100, Symbol: xDAI, Block Explorer: https://blockscout.com/xdai/mainnet.
3. Send ETH or ERC-20 tokens from Ethereum to Gnosis Chain using the official xDai bridge.
4. Go to app.honeyswap.org and connect your wallet.
5. Swap tokens, add liquidity, or farm Comb rewards.

Don’t skip step 2. Many new users lose funds because they try to use Honeyswap on Ethereum Mainnet instead of Gnosis Chain.

The Honeycomb asset manager helps track your positions - deposits, withdrawals, and rewards - all in one place. It’s simple but effective.

Pros and Cons

Pros:

• Extremely low transaction fees - often under $0.01 per swap
• No KYC or account creation
• DAO-governed with transparent decision-making
• Multi-chain support (Gnosis, Polygon, soon Arbitrum)
• Unique dual-token incentive system

Cons:

• Very low liquidity - not suitable for large trades
• Only 26 tokens available - limited selection
• Minimal user support - rely on Discord and forums
• Annual protocol revenue is only ~$20,000 - no income for token holders
• Beginner-unfriendly documentation

Who Is Honeyswap For?

Honeyswap isn’t for everyone. If you’re trading $10,000+ daily, look elsewhere. If you’re buying $50 of DAI every week to pay for DeFi services, Honeyswap is one of the few options that won’t eat your money.

It’s perfect for:

• Users on Gnosis Chain dApps (like 1Hive, Gnosis Safe)
• People tired of Ethereum gas fees
• Micro-traders and small-scale liquidity providers
• DAO participants who want to earn HNY governance tokens

It’s not for:

• Day traders needing high liquidity
• Users who want 24/7 customer service
• Those who need a wide selection of altcoins

How It Compares to Other DEXs

Here’s how Honeyswap stacks up against similar platforms:

Honeyswap wins on cost. It loses on everything else. But for its niche, it’s unmatched.

Future Outlook

Honeyswap’s future depends on Gnosis Chain’s growth. If more projects build on it - especially DeFi tools - Honeyswap could see increased usage. The team has announced plans to integrate with Arbitrum and improve cross-chain bridges.

But there’s a problem: the platform generates almost no revenue. At $20,000 per year in fees, it can’t pay developers full-time. That’s why updates are slow. The community keeps it alive, but that’s fragile.

Analysts at Delphi Digital say Honeyswap’s strong community gives it staying power. Messari warns that without a sustainable revenue model, small DEXs like this will fade as bigger players dominate.

Right now, Honeyswap survives because it fills a gap. As long as Ethereum stays expensive and Gnosis Chain stays active, it has a place.

Final Verdict

Honeyswap isn’t a replacement for Uniswap or PancakeSwap. It’s a specialist tool. Think of it like a bicycle versus a sports car. If you need speed and power, go for the car. If you just need to get to the corner store without spending $10 on fuel, the bike wins.

If you’re active on Gnosis Chain, want to avoid Ethereum fees, and trade small amounts regularly, Honeyswap is one of the best options out there. It’s cheap, transparent, and community-run.

If you’re trading larger sums, need more tokens, or expect fast support - look elsewhere. The platform isn’t built for that.

It’s not glamorous. It’s not popular. But for its users, it works.