In early 2009, Bitcoin trading was peer-to-peer, initially through PayPal. However, it was only a few months before the first ramp was launched. Mt Gox and earlier variants were, unsurprisingly, rudimentary and centralized. Fast forward less than a decade later, and crypto trading is a vibrant industry with billions moving around every day.
Exchanges are critical channels for moving billions of assets between users and chains. As the industry expands and crypto finds adoption, its role will only be magnified. This surge is especially when decentralized finance (DeFi) is at the forefront, offering irresistible deals.
DeFi and the role of liquidity aggregators
In less than three years, DeFi commands billions in total value locked (TVL), with demand stemming from the subsphere’s value proposition.
DeFi is, as the name suggests, decentralizing finance using smart contracts, allowing users around the world to access funds. As exciting as it is, there must be reliable ramps with acceptable levels of liquidity for smooth and trustless token swapping.
Decentralized Exchanges (DEX) are launched from major smart contracting platforms like Ethereum and BNB Chain and have relatively high levels of liquidity. However, since there are more than a dozen blockchains with active crypto projects whose tokens control hundreds of millions in market capitalization, most traders have been manually hopping between exchanges or using liquidity DEX aggregators.
Adding DEXs, for example 1 inch, allows seamless exchange of different tokens listed on multiple DEXs from one user interface. By doing this, liquidity aggregation DEXs save time and resources, which encourages more users to funnel funds into DeFi.
Nonetheless, while liquidity aggregation DEXs play an important role in DeFi, most are single-chain and some are multi-chain, allowing their users to pool their assets, but none have cross-chain aggregation capabilities. As a result, merchants receive fewer tokens than they would if they could access liquidity on multiple chains at the same time… Oh wait. Now they can.
Chainge Finance: best price, cross-chain and fast settlement
There is a big problem that Chainge Finance is currently tackling. The developers of the cross-chain liquidity DEX aggregator have launched a blockchain-based trading hub laser-focused on ensuring traders trade assets in the most liquid environment while securing the best rates.
Token trading through Chainge Finance is custodial-free and offered through a user-friendly mobile interface. The platform also has helpful asset management tools used by over 400,000 users for a combined TVL of over $160M and total aggregate liquidity of over $40B. The distinguished tools available on Chainge Finance include a spot, futures, and options DEX, universal digital assets with cross-chain roaming capabilities, a time frame module, and more.
Every order initiated from Chainge Finance will be queried on all 20 supported DEXs and “tracked” for the best prices. Once the strings have been struck, the order splits into multiple liquid chains so that the merchant receives the best prices. The completed part can be conveniently viewed in the order details section of the app.
Chainge Finance does this through its proprietary smart router that leverages DCRM technology and an exchange lookup algorithm. The Smart Router tool searches for embedded DEXs on multiple chains for the best lowest slippage rates while laying out a route for fast settlement.
When a user wants to exchange token A for token B, the smart router will query the DEXs and determine the real-time liquidity for the A/B pair across all DEXs on each chain.
Taking into account the cost of gas, the smart router will return the best route to execute the order.
For example, the fixed number of A tokens to trade on Ethereum on Uniswap DEX + the fixed number of A tokens to trade on Ethereum chain on Sushiswap DEX + the fixed number of A tokens to trade on BSC chain on Pancake DEX, and more until reaching the total amount of the swap.
After the user places the order, the following steps will be executed:
- Token A is wrapped in the merge chain (no matter what chain token A is on)
- Transaction is signed to burn all token A universal assets in meltdown
- The recording receipt is used to call different proxy exchange smart contracts on each chain to use token A on those specific chains to execute the exchange.
- Within the slippage margin, the trade order will be executed.
NB: If the slippage margin is exceeded, the swap deal will only be partially completed and the user will immediately get back the remaining part of the A-tokens.
This use case should make obvious the huge advantages of using the Chainge Finance cross-chain liquidity aggregator, also known as the most liquid DEX on the market.
Chainge Finance has incorporated more than 20 DEX and 1 aggregator in 9 chains
Notably, Change Finance’s DCRM technology is proprietary and developed by the Fusion Foundation in partnership with some of the world’s leading cryptography and security experts, including Louis Goubin, professor of computer science at the University of Versailles, and Pascal Paillier, Ph. d
Chainge Finance has already integrated with over 20 DEXs and 1 aggregator on 9 popular blockchains (with many more to be added gradually). For example, on Ethereum, Chainge Finance integrates 1 inch, Uniswap and SushiSwap. Meanwhile, on the Cronos blockchain, they have chosen VVS and Cronaswap.
This DeFi protocol is well thought out and a cut above the rest. It is purposefully designed to address existing pain points of inconveniently low liquidity resulting in unfavorable swap rates and eliminates the need for cross-chain bridging.
Ultimately, Chainge Finance has designed a platform where traders can confidently trade cross-chain assets at the best trading rates in highly liquid environments and manage their crypto assets backed by top-tier security protocols.