Think of DEX aggregators like Google; except instead of displaying a collection of the best links, DEX aggregators collect and display the best DEX’s to store, farm, and exchange money on.
As the decentralized finance segment continues to gain steam despite an overall slump in the crypto space, decentralized exchanges and aggregation services have recently shown sustainable growth.
In this chart, each wallet is counted only once
But the question remains: why have DEX aggregators seen such consistent growth? There are three big reasons:
If you’ve kept up with the blockchain space then you know high gas fees are an ever-present issue for Ethereum. It’s a factor that has negatively impacted DeFi protocols like Uniswap and Sushiwap as users often have to pay over $15 to trade or swap a token over the past month.
However, it is in situations like these where DEX aggregators shine. Put simply, DEX aggregators provide users with the best swap/trade rates and take active steps to further reduce gas costs – a factor that has directly influenced the rise of these protocols.
The chart displays gas costs incurred by the users of several projects as total gas cost is U.S. dollars divided by the july 2021 swap volume.
Side note, we speak of Ethereum because while other blockchain’s like Solana and Avalanche reduce transaction costs to pennies, most prominent DeFi protocols exist solely on Ethereum.
DEX’s originally rose to prominence because using centralized exchanges came with a few distinct disadvantages like:
By contrast, DEX’s have no KYC protocols, can be accessed by anyone across the globe, and are continuously innovating to stay ahead of their competitors. However, with regulations looming over DEX’s since September 2021, the flexibility DEX aggregators offer become critical to DeFi’s health. DEX aggregators can react faster to regulations by removing DEX’s that aren’t compliant while introducing innovative financial services from compliant DEX’s. This flexibility ensures users can leverage the best DeFi has to offer – come what may.
DEX aggregators are the main beneficiaries of DeFi’s innovations. Through the ability to integrate with any DEX, DEX aggregators can easily keep up with DeFi’s limitless potential while providing low fees and a seamless, all-in-one user experience.
The biggest issue with DEX aggregators is that many are limited to just connecting Ethereum liquidity pools. This constrains the extent of multi-chain accessibility for DEX trading.
A cross-chain liquidity aggregator, FLUID aims to solve this issue by introducing cross-chain liquidity into the exchanges with no counterparty risk, essentially pooling sporadic liquidity onto a single platform.
FLUID incorporates an institutional smart-order routing engine to provide a solution to the DEX issues. Complex algorithms are tasked with finding the best routes to fulfill trade orders across different networks to alleviate any liquidity issues for institutional investors.
This is achieved by aggregating resources from different DEXs across different chains into a larger pool to access. The goal is to provide high throughput and cross-chain liquidity to rescind transactional issues between different DEXs.
A liquidity example of a four cross-chain pool can be, for instance:
BTC pool⇒ ERC20⇒ USD⇒ Polygon
DEXs will play a significant role in the financial economy of the future.
The first step was eliminating order books and replacing them with liquidity pools. Automated market makers were able to pioneer a dynamic shift in the DeFi market.
With virtual assets slowly evolving into a formidable investment platform, so will the need for steady liquidity in DeFi. FLUID introduces a powerful decentralized liquidity solution ensuring sustained institutional adoption of digital assets.
FLUID is an institutional smart order routing engine and liquidity aggregator that brings high-throughput and cross-chain liquidity to the digital asset exchange space at zero cost and no counterparty risk. With every asset aimed to be tokenized in the future, FLUID is positioned to capitalize on penetrating cross markets, including spot, futures, derivatives, synthetics, STOs, and tokenized assets to provide the railways with interoperable liquidity markets.
FLUID is backed by a professional team consisting of Wall Street bankers and technologists from BlackRock, Bank of America, Jefferies,Goldman Sachs, Merrill Lynch, BNY Mellon, Citibank, Visa, and founders of leading regulated digital asset OTC trading desks, quantitative firms, and popular blockchain companies.
Korea's premier crypto and blockchain event, Korea Blockchain Week, saw crypto enthusiasts from around the world converge in Seoul for inspirational keynotes, panel discussions, pitch competitions, investor meet-ups, and world-class networking opportunities.
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This week’s FLUID Live featured FLUID’s CEO and President, Ahmed Ismail, and Head of Marketing and Communication, Matias Jeldrez, who addressed our community’s queries regarding the TGE and FLUID Rewards.
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Liquidity aggregation is not a new concept in the financial industry. On the contrary, it has been used as a solution to tackle fragmented liquidity for many years across conventional financial systems.
Over the last decade, artificial intelligence has snowballed, and no business or industry today is immune to its influence and pervasiveness. This is more evident in the financial services industry, which is constantly evolving and realizing that AI is a transformational technology.
The DeFi industry has the potential to disrupt the TradFi industry by using blockchain-based applications and services to replicate banking, investing, and trading activities. Many TradFi services already have a DeFi counterpart, and more are on the way.
Blockchain-based technologies have surged in popularity over the years. Time and time again, efforts have been made to promote awareness of this relatively new phenomenon. The decentralized finance (DeFi) sector is undeniably thriving, with the total value rising from $700 million in December 2019 to over $200 billion at the beginning of 2022.
The internet that we know today has traversed a long way since its inception. Web1, the first internet, had a physical infrastructure of cables and servers that allowed people and computers to communicate with one another. The ARPANET Network of the United States government sent its first message in 1969, but the web that we know today didn't exist until 1991, HTML and URLs allowed people to browse between sites.
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FLUID, the ultra-low latency liquidity aggregator that uses AI quant-based models to tackle inefficient fragmented liquidity in virtual asset markets, has announced it will integrate the LERC20 standard of Lossless to power its $FLD token with hack mitigation capabilities of detecting fraud, freezing fraudulent transactions, and reversing stolen funds.
The term liquidity has various financial meanings that are often used interchangeably and can be very confusing; it could refer to the ease of how an asset is exchanged for another without affecting the market price, how much liquidity a company holds, aggregating liquidity from different sources, or providing access to liquidity.
FLUID LP – FLUID’s DeFi solution – will utilize Polygon as its commit-chain to provide ultra-low transaction fees at speed.
FLUID is a game-changer for the virtual assets industry in liquidity aggregation and provides high throughput, ultra-low latency and costs, and zero counterparty risk through AI quant-based solutions
Counterparty risk refers to the situation where one of the parties of the financial transaction fails to fulfill their commitments. In the traditional market, stocks, bonds, and derivatives carry counterparty risk.
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Trading technologies have evolved significantly over the years. The traditional finance trading technology evolved from a simple electronic order book to an ultra-fast, interconnected, AI-supported unified liquidity, allowing investors and institutions to facilitate advanced trading strategies.
Virtual assets are known for their volatility. Even though the virtual asset market is considered volatile, with the recent digital assets trading and investments boom, many institutional investors seek greater involvement.
As the DeFi industry exceeds growth forecasts, it has now significantly attracted more interest from financial institutions and regulatory bodies.
FLUID is the trading system that consists of an AI-based smart order routing protocol and cross-chain liquidity aggregator enabled by FLUID’s proprietary hedging pool providing high throughput at ultra-low costs, ultra-low latency, and zero counterparty risk.
Most present-day centralized crypto exchange platforms use custodial trading.
Liquidity is the measure of ease to which a cryptocurrency asset can be exchanged/traded into another crypto asset or fiat currency.