OpenOcean Project Review: The First DEX Aggregator on the BSC

OpenOcean is the first DEX Aggregator that has launched on the BSC, aggregating liquidity from the largest exchanges: PancakeSwap, BakerySwap, StreetSwap and BurgerSwap.

What are Dex Aggregators

Let’s start with Decentralized exchanges; we have seen a rapid growth of DEX with Ethereum based projects such as UniSwap, SushiSwap, and Injective. On top of this, many DEX’s have found themselves on the Binance Smart Chain (BSC) such as PancakeSwap, StreetSwap, and BakerySwap. These exchanges allow users to trade and swap cryptocurrencies using a distributed database.

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Messari data displaying rapid growth of DEXes

DEX’s appeal to many users as traditional Centralized Exchanges (CEX) have many weaknesses concerning coin custody, identity breaches, server downtime, fees, and even insider trading. DEX’s address many of these problems, especially as they continue to develop and innovate, improving on these weaknesses further.

While DEX’s can capitalize on privacy, ease of access, fees, and downtime, it is not uncommon for DEX’s to have liquidity issues. These issues are most apparent in low demand/small market cap tokens, resulting in considerable slippage and spreads. Without a centralized entity, developers must bootstrap liquidity through incentives such as liquidity mining or direct revenue exposure.

This is precisely the issue that DEX Aggregators such as OpenOcean aim to solve. DEX Aggregators reference multiple exchanges, analyzing the price to ensure users the best fill price. Instead of restricting users to a single DEX, these platforms allow users to access numerous exchanges’ liquidity at once, where it will select the most optimal deal. One of the largest DEX Aggregators can be found on the Ethereum Network, 1 Inch Exchange, where it aggregates over 15 different exchange feeds, granting users the most efficient swaps.

What Is OpenOcean?

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OpenOcean is a DEX aggregator that supports multiple chains such as ETH, BSC, and ONT. Across all chains, OpenOcean aggregates 12 different exchanges, allowing users to receive optimal fills. Specifically, OpenOcean is the first DEX aggregator on the Binance Smart Chain (BSC), aggregating liquidity from multiple large exchanges. OpeanOcean ensures users buy tokens for the optimal price on the BSC, aggregating from all leading AMM’s: PancakeSwap, Bakeryswap, StreetSwap, and BurgerSwap.

Key Features:

  • Developing a one-stop spot and derivative trading on both DEXes and CEXes
  • Cross-Chain Swaps
  • Best Price and Lowest Slippage
  • Tailor-made interfaces suiting specific traders

Execution

OpenOcean boasts a few key features which allow it to serve its users effectively. To ensure users obtain the best fills and optimal gas fees, OpenOcean applies its optimizing algorithm basted on Dijkstra and D-star to find the best initial route. From there, the algorithm uses machine learning, continually optimizing routes based on data. This system allows for efficient and accurate aggregation without gouging users for fees.  

OpenOcean has introduced a system coined Token Economic Subsidies, which reduces users’ impermant loss through “slippage subsidies.” This protects users in scenarios when their exchange value is higher or lower than the transaction’s expected value.

 In the scenario that the users exchanges value is higher than the expected value, the user will be fully refunded the exchange value

When a transaction is completed with a lower than expected value, users are subsidized with the platform token, OOE. 

On top of this, the OpenOcean team has introduced its asset evaluation system, OpenOcean Defi Evaluation System (ODES). In order to protect users, the system evaluates token in terms of risk exposure, using a large amount of ecological data. For tokens to be provided for exchange, they must meet a threshold of “low risk.” This serves as a preliminary vetting feature, adding an extra layer of protection to OpenOcean users.

Finally, the team at OpenOcean aims to cater to all traders; the teams’ vision is to become a one-stop trading spot for all assets. This means users will be able to trade using centralized platforms such as Binance Coinbase and Bitfinex using the OpenOcean Wallet. OpenOcean is also striving to incorporate derivatives platforms using a portfolio margin pool. To provide users ease of access to their front-end, OpenOcean gives users APIs and custom-fit UI’s to suit their needs. OpeanOcean is already implementing a brand new UI/UX to offer their traders the optimal tools. Overall the team plans to expand further as they only cater aggregation to spot and DEX traders currently.

Source : bsc.news

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