Subswap Aggregator on XDC: Current State, Problems, Solutions, and Advantages
1. Problems statement
Currently, there are multiple DEXs on the XDC Network, each with its own liquidity pool and trading pairs. This leads to the problems of fragmented liquidity and price discrepancies.
[data]
Fragmented liquidity and price discrepancies lead to the following problems:
- Users have difficulty finding the best trading price
- Increased transaction slippage
- Slower transaction execution speed
2. Solution : deal aggregator
A Subswap aggregator can solve the above problems. The aggregator provides users with the best trading price and the most optimized transaction execution plan by aggregating the liquidity pools and trading prices of multiple DEXs.
Subswap aggregator provides users with the following advantages:
- Better trading prices: Users can find the best-priced solution by exploring all possible trading options through the aggregator.
- Lower transaction slippage: The aggregator can help users reduce transaction slippage, thereby lowering transaction costs.
- Faster transaction speed: The aggregator can optimize the transaction execution path, thereby improving transaction speed.
- Higher liquidity: The aggregator can aggregate the liquidity of multiple DEXs, thereby providing users with greater liquidity.
3. How does it works
- The aggregator collects liquidity pool and trading price data from multiple DEXs
- Based on the user's trading request, the aggregator calculates all possible trading solutions
- Selects the trading solution with the best price, the least slippage, and the fastest execution speed
- Sends the trading instruction to the selected DEX for execution
[aggregator example]
4. Tentative Proposal
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