DEX Aggregation Benefits
Let's take a look at a couple of direct benefits for traders from using DexHunter DEX aggregator compared to trading on a single DEX:
- Best Trading Prices: By accessing multiple exchanges at once, DEX aggregation ensures traders find the best available price for their assets, optimizing their buying or selling experience.
- Partial Fills: DEX aggregation minimizes the risk of price changes during trade execution, making transactions more predictable and closer to the expected price.
- Enhanced Liquidity: By pooling the liquidity from various exchanges, DEX aggregation makes it easier to trade large quantities without substantially affecting the market price, accommodating various trading needs and preferences.
Example: Swapping 1000 ADA to Y Token
You want to swap 1000 ADA for Y Token. You have three options:
Using DexHunter (DEX Aggregator):
- DEX A: 600 ADA at 2 Y Tokens each = 1200 Y Tokens.
- DEX B: 400 ADA at 1.95 Y Tokens each = 780 Y Tokens.
- Total using aggregator: 1980 Y Tokens.
Swapping Directly on DEX A (With Price Impact)
- Total on DEX A only: 1960 Y Tokens.
Swapping Directly on DEX B (With Price Impact)
- Total on DEX B only: 1940 Y Tokens.
Summary
Using an aggregator, you get 1980 Y Tokens, which is 20 more than using DEX A alone and 40 more than using DEX B alone. The aggregator leverages the best prices, minimizing the price impact, and maximizing the Y Tokens you receive, this also works the other way around for selling tokens for ADA.
In conclusion, DEX aggregation and partial fills are crucial functions in the decentralized finance (DeFi) landscape. Together, they offer improved liquidity, better price optimization, and increased trading flexibility, leading to a more robust and user-friendly trading ecosystem.
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Let the hunt begin!
