As in the dot-com era of the mid-1990s, it is said that cryptocurrencies are approaching a phase of hyperacceptance, where growth reaches an inflection point and starts an orbit towards the moon. Looking back over the last decade, the use of cryptocurrencies can largely be attributed to the rise of stock markets. With so many exchanges, many new users have entered the world of cryptocurrency.
Ironically, while these exchanges have played a key role in the successful adoption of cryptocurrencies so far, they have also sparked a new debate between using a centralized exchange (CEX) or a decentralized exchange (DEX). While both exist to provide the same trading functionality, CEX, as the name suggests, relies on a trusted third party to hold digital assets, thus creating a pool of liquidity.
These exchanges are still the most popular, providing an unsurpassed user experience and functionality for trading assets across multiple chains with ample liquidity. The only problem is that brokers can be corrupt, scammed and demand that users follow their rules.
It is on the spectrum of DEXs like Uniswap (UNI) and PancakeSwap (CAKE). These DEXs give traders real ownership of their assets. Instead of relying on a central authority, users rely on an automated protocol that provides extra security and eliminates the need for Know Your Customer (KYC) procedures.
DEXs also require complex knowledge, making them difficult to use for most users, offset by concerns about limited liquidity. For investors, the question is whether the user should give up control for the sake of simplicity, or turn to the learning curve to retain ownership of the assets?
Part of the answer is not black and white; Instead, it looks like a gray area that is characteristic of DEX complexes. DEX aggregators work with the function of integrating data from several exchanges to increase liquidity and improve pricing.
One of the aggregators currently working on this area is Arken Finance, a user-friendly platform accompanied by what their team describes as a “best speed 3.0” exchange engine. With Arken, users can use their own algorithm to select the best exchange provider for a given swap and facilitate shared trades for higher prices. The result is an offer that removes the question of what to give up when trading cryptocurrency.
Minimize price impact
Arken Finance’s Best Price Mubadala Engine received its first update in December 2021 and comes in two parts. First of all, there is the indexing algorithm: a solution for selecting the best prices from several pools and reassessing the associated price conditions during the trading process, all in seconds.
The second component is the “Order Splitting Algorithm”: a tool used to take advantage of large transactions by dividing an order into several orders so that they can be executed in groups with a better exchange rate. The Arken Finance algorithm can also be used on stablecoin swaps.
Recently, version 3.0 of this algorithm has further increased the competitiveness and efficiency of the tool in the market. Among other benefits, the team boasts a 20-30% reduction in the gas surcharge and elimination of the double currency tax.
Although this update is still new to the market, the team suggests that there is still plenty of room for growth, including the potential to become a global platform that can connect to any DEX without sacrificing speed or ease of use. The sheet’s best-priced cross-chain change will be the bridge technology needed for seamless token trading.
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Through integration with the Multi-Chain Marketplace site, users will have access to cross-chain search functionality to streamline the transaction process. After selecting a currency, the following steps for connection and exchange are performed in a thread. However, the latest features of Arken Finance will display transaction history, allowing users to manage all intermediate steps.
Together, the team’s goal remains to provide equal financial opportunities to everyone around the world with the goal of growing the DeFi sector as a whole. According to the Arken Finance team, “The most important thing is the long-term viability of the project and its benefits for our users. Finally, we want to contribute to the development and gradual prosperity of the DeFi sector through exceptional projects that can make a significant contribution to the future of DeFi. . ”
Over the next two months, users can expect to expand to two new series, add new DEX integrations and release the ARKEN coin, the project token, to the general public.