The team of 0x, a professional-grade decentralized exchange aggregation API for blockchain developers, announced today a new feature with the introduction of ‘Slippage Protection’ for the 0x API that enables MEV-aware smart order routing for DEX trades.
Slippage Protection threads slippage statistics into 0x API’s algorithm to deliver the optimal trade route. With Slippage Protection, the 0x API enables developers to view more reliable quotes and deliver the best-executed price to their users.
Executed Price?
The price that the end-user gets, inclusive of gas fees and slippage after the trade is executed on-chain. This is an important distinction because many DeFi apps today only show quoted prices, which do not incorporate slippage and are often different from the executed price.
How it Works: Slippage Protection
Slippage Protection ingests slippage measurements and their statistical properties to model and predicts slippage outcomes for different liquidity sources, trading pairs, and trade sizes.
These model predictions are then incorporated into 0x API’s smart order routing to identify the route(s) expected to yield the best-executed price. The result is a more transparent and consistently better-executed price than what users now experience in other wallets and DeFi applications.
Currently, Slippage Protection is supported on Ethereum for the most active trading pairs (ETH/USDC, ETH/DAI, ETH/USDT, ETH/WBTC, WETH/USDC, WETH/DAI, WETH.USDT, WETH/WBTC).
“We’re excited to equip DeFi developers and enterprise users with the tools and infrastructure to offer the best DEX trading experience for their users. Starting today, Slippage Protection is auto-enabled in 0x API and no additional integration is necessary. If you are a developer looking for more information about Slippage Protection and 0x API, get started with our developer docs. Enterprise users who require an API key, please contact us directly.”
– The 0x Team
Source: https://www.cryptoninjas.net/2022/07/14/0x-api-introduces-slippage-protection-to-enable-best-execution-order-routing-for-dex-trades/