Make your trades smarter with the OpenOcean AMM aggregator
Introducing a new DEX aggregator on Binance Smart Chain
2020, the year of the decentralized finance explosion (DeFi) has come to an end. Now it’s easier than ever to do a lot with your crypto. You can stake them, lend them, borrow them, and even use them for rights to govern your favourite crypto platform.
All thanks to DeFi.
As beneficial as all these crypto opportunities are, they can get quite confusing for a beginner…
Which AMM should I use? *Which exchange best suits my needs? *
These are questions that are sure to be faced by crypto initiates looking to partake in the industry. Not to worry, one solution to this confusion, are new protocols called decentralized exchange aggregators (DEAs).
A DEA does exactly what it sounds like, it aggregates multiple decentralized exchanges together in one convenient platform.
DEAs are not just for beginners though.
These convenient platforms use algorithms to find the best price for a trade by comparing and routing through multiple exchanges.
For example, if Balancer is providing a better deal on a trade than Uniswap, instead of having to keep tabs on both platforms to snag the best deal, an investor can rather use a DEA to have access to both of them through a single platform. Trades can even be divided into smaller trades that move through multiple exchanges before finalizing the order with an aggregated best price for the investor.
Is OpenOcean a one-stop shop for your trading needs?
Now that 2021 is here, it’s time for a notable DEA, OpenOcean.finance, to expand its horizons.
With the goal of becoming the one-stop service for trading in the crypto sphere, the platform features a user-friendly interface with simplicity at its core.
OpenOcean aggregates across threee blockchains as of the time of this writing. The chains are Ethereum, Binance Smart Chain and the Ontology chain.
Let’s discuss the key value propositions of OpenOcean and how it intends to establish itself as a dominant DEX aggregator.
When it comes to trading crypto, prices and fees are a huge factor in net profits. OpenOcean utilizes an optimized version of the Dijkstra algorithm that they call D-star. D-star allows them to find better routing through exchanges enabling lower slippage, better prices, all in real-time during an active trade.
Nevertheless, if users still suffer through impermanent loss, OpenOcean will compensate them through subsidies.
To further optimize the platform, all assets listed are evaluated by the OpenOcean DeFi Evaluation System (ODES) so that fraudulent assets are filtered and never remain on the platform.
OpenOcean has a very simple UI so the complicities of these features don’t confuse users. Any level of trader can trade without clutter. However, the UI may be customized through the use of an API provided by the developers for even the most advanced institutional traders.
With all these features in place, the platform aims to aggregate Eth and non-Eth chains as well as dominant central exchanges; Binance, Coinbase, Bitfinex, and Bitmex. Currently OpenOcean incorporates thirteen platforms but will soon add more this year.
2021 is when DOT, TRON, and NEO will be added to the platform; alongside, governance tokens and liquidity mining being released on the platform as well. According to their Medium articles, they will also launch some DeFi products this year, integrate DeFi and CeFi derivative trading products, and release a portfolio margin pool.
Since decentralized exchanges are unlikely to completely replace central exchanges, the integration of both types together could be vital to the success of OpenOcean.
OpenOcean vs. 1inch
As OpenOcean is an aggregator, its main growth will be based upon how many platforms it can aggregate and the trade returns it can achieve.
Let’s compare the platform with a notable competitor, 1inch.exchange.
Currently, 1inch.exchange lists more platforms, but with the planned release of 3 more chains to the network this year and with multiple platforms on each chain, OpenOcean could easily surpass 1inch in its exchange listing.
Let’s take a look at a swap on both platforms, and see how OpenOcean.exchange fairs against 1inch.exchange in the context of pricing.
Above you can see three screenshots with the 2 on the left being for 1inch.exchange and the one on the right being for OpenOcean.finance all viewed through the Trust Wallet DApp Browser. At a glance you can see that OpenOcean is offering a better return than 1inch for swapping Eth for Dai, returning 14 more Dai for the same trade.
It doesn’t end there though, the fees on OpenOcean are less as well! If you see the bottom of the 1inch.exchange screenshots, you can see options to change from ‘Max return’ to ‘Lowest gas’, in this case regardless of the switch, both options show the same return and the same gas price of $39.44. Meanwhile, OpenOcean lists a fee of of only 353.4 GWEI which is equivalent to $0.0004 at the time of this writing.
Even if OpenOcean returned less Dai in the trade, the platform would still likely be more profitable due to its minute fees compared to 1inch.
OpenOcean does all this without any of the clutter that the competitor has on it’s UI. The platform is able to honour simplicity while staying true to performance. Which is definitely a way to appeal to beginners while still attracting advanced traders.
With this performance already in place, OpenOcean has a good chance to establish some dominance in the crypto trading sphere. The developers have intentions of continuously adding more exchange platforms, including centralized and decentralized, and the pricing will only get better due to the machine learning algorithms the platform will undergo.
Combine this with the safety net of ODES, the subsidies that will be distributed to counter impermanent loss, the portfolio margin pool that is soon to be added, and further services the platform will introduce and you have a solid platform that is worth adding to your trading tool kit.
This DEA shows strong potential of achieving its goal of being the one-stop trading service for the crypto investment sphere. So, let’s see how the platform delivers in 2021 and how it impacts the crypto trading world.