Reasons Why OpenOcean is the Best Aggregator and How it Works
Hello, OpenOcean lovers! today we’ll be talking about how OpenOcean aims to be the CeDeFi Aggregator and how OpenOcean works!
Make sure to read till the very end.
First of all, let’s define OpenOcean.
What is OpenOcean?
OpenOcean is an aggregator that gives you the best rates accross decentralized and centralized exchanges, with top trading efficiency.
With OpenOcean, liquidity are aggregated across several markets and distributed ledgers, whether they are centralized or distributed. However, the platform wants to expand its offerings to include other services such as derivatives and asset management in the near future. As a long-term objective, it aspires to become a one-stop shop for all forms of crypto liquidity.
What problem does OpenOcean solve?
Market fragmentation and asymmetric information can contribute to trading inefficiencies in the crypto market. The goal of OpenOcean is to provide a single point of access to many sources of liquidity. In order to get the cheapest price, OpenOcean aggregator route orders among several exchanges using algorithms, which take into account slippages, fees, and transportation costs. Other financial services like derivatives are also being aggregated for trade.
Liquidity aggregators are useful not only for trading, but also for a variety of other financial services. An aggregator can identify the best position or rate across several platforms, for example, whether you wish to enter the futures market or lend your crypto assets. Virtually all aggregators presently focus on decentralized marketplaces. DeFi and CeFi markets might be integrated into a single platform, allowing customers to access financial services from both. Those are the goals of OpenOcean.
How Does OpenOcean Work?
- All exchange prices are aggregated by OpenOcean, which then chooses the optimum way to trade based on price and slippage.
- OpenOcean uses the D-star algorithm, an improved version of the Dijkstra algorithm, to discover the initial trade route. It then uses machine learning to improve the path. OpenOcean Atlantic was published in October of 2021. An updated algorithm and other protocol enhancements are included in the new release.
- OpenOcean communicates the prices to the user and execute trades.
- There is no charge for using the aggregator protocol, and traders simply have to pay the normal blockchain gas and exchange costs for doing transactions.
Here are some reasons why OpenOcean is simply the best aggregator compared to other aggregators
- It finds the best route for your trade across centralized and decentralized exchanges and even cross-chain.
- It has the highest trading efficiency with its improved algrithms that results in less slippage, faster response times and optimizing routing to achieve lower gas fees.
- It helps to maximize capital efficiency with one-stop derivativestrading by opening positions on multiple derivative protocols simultaneously.
- Users can take advantage of its full aggregated ecosystem with arbitrage opportunities found within spot and futures trading across DEXs and centralized exchanges.
OpenOcean intends to launch futures aggregate trading and margin products in 2022, according to their roadmap. Cross-chain aggregation will be made available, allowing for the execution of cross-chain swaps. Over time, OpenOcean will incorporate additional financial products, like as lending, insurance, and other investment services, into its platform. The platform hopes to offer an intelligent asset management platform for financial solutions in 2023. In other words, OpenOcean would serve as a one-stop shop for centralized and decentralized financial solutions in the near future.
Stay Tuned for more amazing development!!