In a DEX, when attempting to swap a large amount of Token A for Token B using a single path, the price of Token B increases proportionally due to the depletion of liquidity along that path. Dynamic Trade Routing addresses this issue by dividing the large token amount into smaller portions and executing swaps across multiple paths. As a result, the price of Token B increases less compared to the previous approach.
AshSwap Aggregator has Dynamic Trade Routing, which aggregates fractured liquidity across DEXs and thereby enables users to source the most capital-efficient liquidity to support their trades. Your trade on AshSwap is split into smaller trade sizes.
For example, if you want to make a 1000 wEGLD-BUSD trade, it may distribute your trade into a 950 wEGLD-BUSD trade on AMM1, 30 wEGLD-BUSD trade on AMM2, and the rest on the third route.
The percent distribution of the swap is dynamically determined to give you the best price. Trade splitting helps get better prices for large-sized trades and trades with tokens where there is shallow liquidity spread out across a number of DEXes. You can see exactly which DEXs were involved in the trade and the amount split between them.
At the moment, AshSwap Aggregator is supporting two DEXs: AshSwap and xExchange, and tokens that are available in AshSwap pools (xEGLD, wEGLD, ASH, USDT, BUSD, USDC, UTK, HTM, sEGLD, HsEGLD)
However, the system is designed to be modular and extensible, allowing for the inclusion of more new DEXes and strategies to continuously improve the search for the best price; thus, we will support more tokens and markets in the future.
We have worked to optimize the AshSwap Aggregator so that it all fits within the transaction limits and that swapping can be done in one transaction. This is important to handle cases where the price of the token you are buying has changed and no longer fits your slippage limit. If the aggregator cannot make the trade with your slippage limit, it will roll back the transaction and return an error.
We aim to make the UI as intuitive and user-friendly as possible. The user interface of the AshSwap Aggregator remains the same as the Swap's, but with a twist. We have added a window showing detailed aggregator routing. Now, users can see the entire amount split and the exchanges involved in the routing.
Notice: The screenshots used in this post are for demonstration purposes only. Values are not accurately presented.
AshSwap is delivering a sustainable liquidity infrastructure for DeFi on MultiversX. As a liquidity hub, AshSwap Aggregator connects liquidity from various protocols and sources to provide the best token rates to traders with minimal slippage.