OpenSwap Troll Talks: How OpenSwap Ensures the Best Swap Prices
With the recent introduction of OpenSwap’s Liquidity Queue Type #1 — Spot Price Queue, market makers and takers now have a mechanism to carry out efficient spot-market trades on selected pairs. For those of you who don’t already know, OpenSwap’s Hybrid Smart Router helps take Liquidity Queues to the next level by enabling the coupling of swap trades from AMM pools with Liquidity Queues to provide a clear advantage over existing AMM pool-only approaches.
How does Hybrid Smart Router work?
The Hybrid Smart Router is DApp service offered by OpenSwap that identifies potential swap paths leveraging both AMM pool and liquidity queue smart contracts. Based on the potential paths, it will be possible to identify the cheapest routing based on the availability of liquidity queues and AMM pools. If no liquidity queues are present or required, then only the AMM pool path will be presented. Similarly, if liquidity queue as a single liquidity source is enough to fulfill the swap, then only liquidity queues will be used.
Since liquidity queues offer advantages on stable coin pairs such as BNB/USDT, it is envisioned that the Hybrid Smart Router will demonstrate its ability the best when swaps based on stable coins are requested. In such a scenario, whether a user wants to swap into a stable coin or out of one, the Hybrid Smart Router will set up a multi-hop swap leveraging both AMM and liquidity queues to provide the lowest cost scenario for the trader.
Making the Most Out of 2-Hop Swaps
As most DeFi users may already know, some of the current DEX routers in the existing market only work with their own AMM pools, which means while the swaps done on these routers are relatively cheaper than on DEXs alone (i.e. PancakeSwap), the cost-efficiency is far from being maximized to the swappers benefits. As mentioned previously, OpenSwap’s Hybrid Smart Router will take OpenSwap Liquidity Queue’s magic to the next level by enabling the coupling of swaps from AMM pools with liquidity queues to provide a bigger advantage over existing routing models.
Let’s take an example of a swap scenario that involves a stable coin (i.e. USDT) and a token (i.e. DOT), if users were to do it via a conventional decentralized exchange such as Pancake, the transaction fees would cost the user at least 0.5%, and the same swap could cost around 0.5 to 0.6% on other DEX routers, and in both cases, slippage on both pools may not yet be accounted for. Alternatively, if the trader were to make the same trade on OpenSwap, leveraging Spot Price Queue as one of the sources, the cost of this swap would only be at around 0.35%, there will be no slippage incurred for the transaction on the liquidity queue, but only on the AMM pool, making it the better option for the swapper and giving him the best bang for his buck!
OpenSwap Hybrid Smart Router is a technology that can be an advantageous option for all sorts of use-cases, our team envisions that it can be specifically effective for the DeFi users who want to exit out of a position in stable coins, for example, investors who partook in an IDO event, farmers who want to realize their gains in stables, or even winners of airdrop or other project marketing campaigns. There is really no shortage of future use-cases as we integrate with more partners and DEXs.
Future Plans with this Awesome Tech
It is envisioned by the OpenSwap team that the Hybrid Smart Router will serve as a gateway to liquidity queues and AMM pools, and efforts will be made to integrate with additional partner wallets and aggregators in the coming time, as a means to extend the reach of on-chain liquidity options.
The OpenSwap Hybrid Smart Router had already been launched along with last week’s Spot Price Queue introduction. DeFi users are welcome and encouraged to go test out making 2-hop swaps with the Spot Priority Queue and Spot Range Queue. The OpenSwap team are currently also planning for a lucrative reward campaign surrounding the concept of 2-hop swaps, so you Trolls should definitely get familiar with it!
Learn more about OpenSwap
For those who are interested in OSWAP tokens or wish to learn more about OpenSwap offerings, please explore the OpenSwap DApp.
We encourage community members to partake in community discussions to help better shape OSWAP tokenomics and help generate more ideas for future utilities. Users can express their thoughts to core team members through joining the OpenSwap Official Community on Telegram.
More information about Liquidity Queues, Hybrid Smart Router, and Open Interchain Protocol will be shared with the community as we move towards features release dates. In the meanwhile, please feel free to follow us across socials to receive the latest updates from OpenSwap.
OpenSwap DApp: https://www.openswap.xyz/
OpenSwap Official Community: https://t.me/openswapdex
OpenSwap Announcements: https://t.me/openswap_official
OpenSwap Docs: https://doc.openswap.xyz/