Lumenswap (LSP), one of the first DeFi protocols in the Stellar (XLM) ecosystem, introduces new swap optimization tools
- Lumenswap (LSP) improves capital efficiency with smart order routing
- Leading DeFi Ecosystem with Native Token LSP: What is Lumenswap?
Lumenswap, the pioneering decentralized cryptocurrency exchange of Stellar (XLM), the largest XRPL fork, shares details of its latest mechanism designed to dramatically improve trading profitability.
Lumenswap (LSP) improves capital efficiency with smart order routing
According to an official statement shared by Lumenswap (LSP) on its social media channels and on its main blog, the company has implemented a new value logistics protocol called Smart Order Routing (SOR).
#lumen swap now supports Smart Order Routing mechanism for AMM swaps. 🧠
From now on, you can get better rates for your trades by splitting your orders between different pools. Same procedure, but faster. 🌈
Read more 👇 https://t.co/2LVjRA5LjP
— Lumen Swap (@lumenswap) August 19, 2022
By default, all protocols in the Stellar (XLM) ecosystem leverage the Horizon API to find the best pricing and yield farming options for their clients. However, the Horizon API rates are not always optimal.
To address this major bottleneck, Stellar (XLM) introduces Smart Order Routing (SOR). For end users, enabling SOR makes cryptocurrency exchange prices cheaper with AMM.
SOR thoroughly analyzes the liquidity statistics of all Lumenswap (LSP) pools to find the most profitable and “deep” liquidity vehicles.
Leading DeFi Ecosystem with Native Token LSP: What is Lumenswap?
Once the most profitable pool is found, the Smart Order Routing mechanism splits the orders into different pools. For example, in demonstration mode, a sell order of 200,000 LSP (to be exchanged for USD Coin or USDC) successfully performed between LSP/XLM/USDC, LSP/USDC, LSP/AQUA/USDC, and LSP/LBTC/USDC. was split into pool.
The difference between the new routing mechanism and the old routing mechanism and the list of available pools can be found in[スワップの詳細]section.
Lumenswap (LSP) users can click the rainbow button to exchange assets via SOR. The blue button is used to exchange assets in “classic” mode.
As previously covered by U.Today, Lumenswap (LSP) is the first AMM-powered DEX in the Stellar (XLM) ecosystem. It combines the benefits of traditional interfaces with a fully decentralized order matching engine.
Lumenswap (LSP) has issued a core native asset, LSP, to reward user activity as well as enable participation in community-driven referendums within the Lumenswap DAO platform.