With decentralized exchanges now making up a large part of the volume of crypto purchases and sales, it is clear that these platforms will play a significant role in the good financial system in the long run.
Automated market makers have specifically modified the sport by completely eliminating the need for order books and replacing them with pools of liquidity. This mannequin was a win-win for all traders running swaps and liquidity providers who had an incentive to send their tokens and earn fees from traders.
Even the sporadic liquidity points in DEXs caused by a generally fragmented marketplace have been addressed with the advent of DEX aggregators – platforms that can primarily pool fragmented liquidity directly into a single platform.
Still, half of these DEX aggregators are essentially limiting themselves to connecting liquidity pools on Ethereum. This significantly limits the amount of multi-chain accessibility that is really possible when buying and selling on a DEX. In addition, the volume of buying and selling of DEXs remains pale compared to most centralized exchanges from today’s perspective.
And while Ethereum is essentially the best-known community within the industry, it’s not for everyone. It’s no secret that community congestion and lack of scalability have resulted in excessive transaction fees on Ethereum.
Retailers have tested Layer 2 options and sidechains like Binance Good Chain, HECO, and Polygon as options, however the transaction barriers between them limit their choices significantly.
In some cases, confusion about actually executing a trade associated with these points of liquidity has pushed DeFi traders straight back to centralized exchanges.
Interoperability between blockchains is clearly the order of the day. Cross-chain liquidity aggregators solve these problems prevalent on decentralized exchanges by aggregating liquidity sources from completely different DEXs across chains and their own cross-chain swimming pools.
O3 Swap is one such cross-chain DEX aggregator that is working to develop the token markets available and improve liquidity as well as buying and selling volume, making cross-chain transactions easier for customers everywhere.
O3 Swap describes itself as the primary cross-chain aggregation protocol that enables the free trade of native property between heterogeneous chains by using “Aggregator + Asset Cross-Chain-Pool” on completely different public chains and Layer 2 that give customers access to Cross offers -chain chain collection transactions with a granted click on.
The company sees the way for DeFi in a multichain coexistence. It currently helps Ethereum, BSC, HECO, Polygon and NEO cross-chain transactions and 4 cross-chain pools: USD pool (ERC20-BEP20-HRC20), ETH pool (ERC20-BEP20-HRC20), BTC pool (ERC20 – BEP20-HRC20) and USDC pool (ERC20-BEP20 polygon).
With the help of certain algorithms, cross-chain DEX aggregators essentially determine the most optimal routes for fulfilling trade orders in blockchain ecosystems. This necessary performance will not only relieve the current DeFi customers, but also remove a number of entry barriers for newer market participants.
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