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Golden Observation丨How "aggregators" can help decentralized financial DEX transactions.



Golden Finance Blockchain, November 29th In the traditional financial market, only investment banks and large financial institutions can provide transaction aggregation and prime brokerage services to help hedge funds or other banks facilitate active-zce trading operations. As intermediaries, "aggregation" service providers can provide customers with some support and services such as risk management, capital accumulation, and coordination of safe transactions, and act as "middlemen" between hedge funds and institutional investors and commercial bank counterparties. Institutional traders are closely connected to global markets and investors, enabling large trading operations to run smoothly.

Today, a decentralized exchange has become a "new product" in the crypto industry. It is a cryptocurrency exchange that operates without the involvement of a central authority or third party. Based on the Ethereum blockchain, decentralized exchanges provide users with greater security and effective control over funds stored or traded. In contrast, centralized exchanges do not completely rely on the blockchain, they really rely on third-party operators, and transaction fees are also charged by these third parties. However, it has to be admitted that the current decentralized exchange is still facing the problem of inefficiency. Users must manually visit and view the decentralized exchange to know the best price or the most effective price of the token, and then they can choose a decentralized exchange. It is obviously a very time-consuming process to compare the trading exchange rates of all decentralized exchanges; in addition, it is also difficult for users to find the best exchange rate of tokens in decentralized exchanges, manually Checks also fail to cope with complex transaction routes and paths.

Golden Morning News | Overview of important overnight news on July 3: 21:00-7:00 Keywords: United States, Galaxy Digital, Tesla, MongoDB, Bloomberg

1. The IRS is gathering information for its cryptocurrency investigation pilot program;

2. Galaxy Digital will be listed on the Toronto Stock Exchange on July 6;

3. Internet finance expert: The development of the blockchain industry in Xiongan New Area should be planned first;

4. Tesla founder: did not build anything on Ethereum;

5. Bitcoin miners’ income fell by 23% in June;

6. China Securities Journal: Blockchain has made great achievements in the field of public services;

7. Analyst: Bitcoin may become a global currency in the next few years;

8. The database company MongoDB was attacked by the network, and the hackers demanded Bitcoin ransom;

9. Bloomberg Chief Analyst: The highest price in Bitcoin history will appear by the end of this year. [2020/7/3]

With the support of the "aggregator", users can find the best token exchange rate in the shortest time through decentralized exchanges, without being limited to any single exchange. If the aggregation algorithm of the decentralized exchange is advanced enough, it can also allow users to complete the optimal transaction at the best price in real time, while avoiding the user's loss caused by the impact of the price and reducing the risk of transaction failure. the

Golden Relativity丨CyberMiles Chief Scientist: Ethereum 2.0 is a PoS cross-chain ecology: In the Golden Theory of Relativity held today, for "stateless Ethereum, multi-client, beacon chain staking, rollup and other technologies currently used by Ethereum , which one impresses you the most and thinks it has the most application value?” asked, CyberMiles Chief Scientist Michael Yuan made a speech and pointed out: Ethereum 2.0 is a PoS cross-chain ecosystem. Compared with other PoS systems, its major innovation is that its beacon chain must support at least tens of thousands of validator nodes. The system will randomly select a combination of verifiers to form an application sub-chain.

Ethereum 2.0 must have enough people to stake to be successful (the standard is 32 ETH, now is a good opportunity for early participation). Because the number of validators must be large, it is safe to randomly select validators to verify the data of the sub-chain.

Although they are all cross-chain ideas, currently only Ethereum uses a large number of nodes and a large number of validators. Neither Polkadot nor Cosmos adopts this method. Therefore, the technology used by Ethereum to manage validators is innovative and should not be used on other chains. Other chains are far from this scale. However, as the development progresses, technologies such as the EWASM virtual machine and Solidity smart contracts can be widely used by other encrypted networks. After all, looking at the entire blockchain world, the application development model is based on the idea of ​​Ethereum. [2020/6/18]

Decentralized exchanges are very meaningful for aggregators (prime brokerages), which have brought a lot of liquidity to many early token projects, and have pioneered the concept of "liquidity mining" and decentralized finance. Users only need to provide liquidity to get benefits. Not only that, but it also facilitates transactions and provides the best execution of transactions within different liquidity pools. Since the liquidity "fragmentation" problem of decentralized exchanges is unlikely to disappear in a short time, some decentralized financial platforms that provide "aggregation" services can easily become the first choice for most decentralized financial transaction users .

Golden Relativity | Bit Jesus: Everyone is excited about the original Bitcoin becoming the world’s currency: In the Golden Relativity held today, in response to the question “What are the main reasons for switching to support BCH in 2017”, Bit Jesus said that I have not changed . Still promoting the peer-to-peer electronic cash system that was first promoted. BTC may have the Bitcoin name today, but it wasn't the exciting Bitcoin of the early days. When I realized they wanted the fees to be high, I stopped paying so much attention to BTC, and they didn't care if people could pay with it. BTC no longer works with money, and the core developers are not interested in money functions. I'm interested in cryptocurrencies that can be used as money. Bitcoin can no longer be used as peer-to-peer electronic cash, but it will not return to zero because it still has a huge network. Everyone was excited about the fast, cheap, reliable payments that the original Bitcoin offered and tried to become the world's currency. [2020/4/9]

In 2019, the cumulative market value of cryptocurrencies is close to 250 billion U.S. dollars, and the influence and scale of the encryption ecosystem are growing day by day, so the market's demand for cryptocurrency aggregation services is becoming more and more urgent. In fact, some transaction aggregation and brokerage services have appeared in the encryption market. The main solutions they provide include: providing support for trading activities, providing support for arbitrage opportunities, and providing support for multi-platform navigation services in the trading ecosystem. Cryptocurrency traders have the same liquidity, security, and regulatory needs as institutional counterparties. However, the existing technological and financial infrastructure that supports the crypto ecosystem remains underdeveloped and disconnected from the market. Although there are a large number of cryptocurrency exchanges, there are still major limitations in terms of interconnectivity, network security, and cross-platform efficiency.

Analysis| Golden Disk: The market is gradually moving towards a bullish trend: Analysis of the Golden Disk: BTC as the first weight, the amplitude is too large, which is not conducive to market development. Instead, as it is now, stabilize the price of BTC and give more to other targets The opportunity is more reasonable. Yesterday, after BTC rose strongly, funds began to flow in, and the top 25 tokens by market capitalization performed well overall. Only XRP, TRX, and BNB closed down, and the rest rose across the board, while some oversold targets even soared sharply. It shows that the confidence in doing more has increased, and the market is gradually moving towards a trend that is beneficial to the bulls, and short-term opportunities can be seized. Remind investors to view market fluctuations rationally and do a good job in risk control. (Log in to the Jinse Finance APP—Discovery to view exclusive reviews of more currencies)[2018/10/9]

The timeline came to May 2019. Decentralized financial aggregation service platforms began to appear in the market. Such platforms can effectively act as a unified portal for the decentralized exchange ecosystem. Pooling liquidity, bringing together different sources of liquidity, providing traders with the best potential exchange rate for token exchange, and enabling traders to conduct effective transactions on different decentralized financial platforms. In addition, decentralized financial aggregation service platforms are usually non-custodial exchanges, which means that they do not directly hold users' digital assets, but help users conduct peer-to-peer transactions, and then charge a small fee for each transaction .

Analysis丨Golden Disk: XRP Triangular Oscillating Range Waiting to Choose a Direction: Comprehensive Analysis of the Golden Disk: XRP is oscillating in the triangle interval, and the trading volume continues to shrink, waiting to choose a direction. Market sentiment is bearish, pay attention to risks. [2018/8/10]

This was unthinkable in the past, as users had to manually search-zce through many decentralized exchanges to find the best exchange rate for tokens, which is not only difficult and time-consuming, but aggregators can often provide An automated and interoperable platform that not only quickly finds the best exchange rate for token swaps, but also facilitates the most efficient conversion path. In fact, the decentralized financial aggregation service platform can provide users with a very innovative trading experience, allowing users to process large transactions at the best exchange rates. It is worth mentioning that the decentralized financial aggregation service platform can also "split" the tokens that users want to exchange into multiple parts, and then distribute them in multiple "market depths". Chemical exchanges are exchanged.

Let’s take a look at the example of 1inch, a decentralized financial aggregation service platform. Currently, 1inch can obtain liquidity from 21 mainstream decentralized financial protocols, including 0x Protocol, Uniswap, Bancor, Balancer, Kyber, Airswap, etc. .

I have to mention the gas fee (GWEI) here. Users must pay this fee similar to what banks charge for funds transfers if they want to transfer value on the Ethereum network. As a basic resource, the gas fee is included in every Ethereum network transaction, and the mining reward paid to the miners by the Ethereum blockchain is proportional to the gas fee consumed by the transaction. However, due to the inherent volatility of gas fees, it is nearly impossible to accurately predict the eventual size of transaction costs. In order to solve the problem of high volatility of gas fees, 1inch created Chi Gas Token, a native functional gas token. By tokenizing gas fees, users can store gas when fees are low, and then use or deploy gas when fees are high. During the transaction, 1inch will burn gas tokens to reduce costs. In fact, 1inch’s Chi Gas Token can reduce gas costs by 42%. In addition, users can effectively save miners' fees and costs by using Chi Gas Token in transactions, and then bid for higher prices without paying corresponding high gas fees. So far, 1inch has burned nearly 6 million gas tokens, saving users more than $2 million in gas fee costs.

The main component of the 1inch v2 release is an application programming interface (API) Pathfinder, which includes a new exploration and routing algorithm and a more intuitive, customizable and user-friendly UI. Pathfinder can split an exchange transaction for a specific protocol according to different "market depths", acting as a bridge between the "source token" and the "destination token". At this stage, 1inch v2 supports finding the best exchange rate from 21 different DeFi liquidity sources, and can fully shorten the response time to help users process transactions more efficiently.

In fact, we can see that the aggregation service platform has made significant improvements to DeFi transactions in many aspects, such as bringing users customizable and price-competitive transactions, improving aggregation liquidity, increasing lower gas fees, It further simplifies important transaction functions while reducing user costs.

Of course, in addition to being able to "split" a token exchange transaction among multiple liquidity protocols, some aggregation algorithms also make effective use of many "market depths" in the same protocol, "market depth" It is an important indicator to measure the supply and demand of cryptocurrencies based on the number of open buy and sell orders.

Just when the transaction volume of decentralized exchanges showed explosive growth, transaction aggregation service solutions also appeared at the right time. According to a recent set of survey data, in the third quarter of 2020, the average monthly transaction volume of the top ten decentralized exchanges increased by 197%, while the average monthly transaction volume growth rate of the top ten centralized exchanges was only 35%. From $3.8 billion in July this year to $30 billion in September, it can be clearly felt that DEX has begun to accelerate its "grab" market share.

Part of this article is compiled from Medium


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