Although decentralized exchanges note billions of dollars in trading volume, their functionality remains somewhat limited. SpiritSwap steps up its game by accommodating the needs of traders with advanced strategies. Using Orbs’ dTWAP module enables broader versatility, creating a crucial industry precedent.
SpiritSwap Takes The Next Step
The SpiritSwap AMM DEX runs on the Fantom blockchain and provides users with various trading options. However, like other DEXs, it could only provide swap and limit orders to its users. Advanced functionality requires users to explore centralized exchanges and trading platforms. Or that was the case until recently when SpiritSwap integrated Orbs’ dTWAP feature. Following the integration, the Fantom-based AMM DEX is compatible with more advanced trading functionality.
SpiritSwap is the first decentralized exchange automated market maker to leverage Orbs’ dTWAP module. It is a decentralized, permissionless, and secure protocol with support for complex trading orders. For instance, users can bring their algorithmic trading strategies – such as Dollar-cost Averaging (DCA) – to the AMM DEX. The dTWAP module developed by Orbs ensures all trades are performed optimally, at the best price, and the lowest network fee.
A SpiritSwap spokesperson comments:
“Today’s decentralized trading infrastructure lacks liquidity, meaning any large order flow can cause significant adverse price impact. If we want to attract more sophisticated institutional investors to the decentralized ecosystem, alleviating these conditions with robust functionalities like TWAP is paramount. As the first-mover in this race, SpiritSwap’s dTWAP integration will showcase the powerful capabilities of our smart contracts and how they can expressly benefit both the liquidity and trade execution needed to support complex strategies.”
The primary purpose of dTWAP is to facilitate optimal order execution in a decentralized and secure manner. That includes a streamlined interface for users to customize trading parameters and respond to shifting market conditions. In addition, dTWAP breaks large orders into smaller chunks to execute them over time, minimizing their market impact.
Boosting The Appeal Of DeFi
Decentralized exchanges are a crucial component of the decentralized finance industry. Any development improving the appeal of DEXs can spark broader institutional interest. Moreover, it helps empower users, which is what decentralization is about. Enabling traders to perform algorithmic strategies decentralised can result in a more considerable liquidity shift from CEXs to DEXs.
Moreover, the dTWAP solution built by Orbs is a Layer-3 solution. It is compatible with Layer-1 and Layer-2 EVM-compatible blockchains and protocols, allowing for convenient integration. The integration of dTWAP by SpiritSwap will significantly test the system and its capabilities. If successful, a similar integration may occur by bigger DEXs in the future.