I've been confused for a while on what happens to a particular cryptocurrency when swapped to another. I mean when a swap may be BNB to get usdt, what happens to the BNB?
Swapping one cryptocurrency to another one is for decentralized exchanges with smart contracts.
It is not directly from a buyer to a seller but from a buyer or seller to a liquidity pool. A bigger a liquidity pool is, a less slippage for a swap with same trading volume in most of cases but it is not always true. Slippage is also set up by developer team of that token that can be low or high, it depends on developers.
Because it is related to liquidity pool, if a developer team rug the pull, liquidity pool will become zero, consequently that token will become zero value.
What are liquidity pools ?What is a rug pull?