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How to handle the challenges about lowest pricing-1inch DEX Aggregator Development

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1inch DEX Aggregator Development is the perfect aggregator that chooses the lowest price-based cryptos for the traders. Here, the 1INCH utility and governance token powers this aggregator. The platform’s decentralized “instant governance” model is provided by 1INCH, which also makes token staking for liquidity mining possible.

However, to make an aggregator just like the 1inch, you need a company that gets your goals covered with an aggregator at the most affordable prices. Moreover, these DEX aggregators like 1inch, search a variety of DEXs to find the lowest market price to facilitate trade in an effort to increase liquidity pools.

How to Reduce Slippage Using the 1inch Exchange’s Deeper Liquidity

Slippage happens when there is insufficient trading volume, causing an asset to be purchased for more than intended or sold for less than intended. By combining liquidity from different DEX platforms, the 1inch DEX protocol increases DEX liquidity and reduces order slippage.

Let’s use the case of an institutional investor who wanted to purchase 1,000 BTC at a price of $50,000 per BTC. However, when the buy order reaches the open market on this specific decentralized exchange, there are only 500 BTC available. As a result, the exchange then moves on to the next sell order set at $50,500/BTC. In this instance, the buyer overpaid by $250,000 ($500 per BTC multiplied by 500 BTC). This is said to be the slippage. 

By combining trading activity across multiple platforms, the 1inch protocol helps to avoid this situation by pooling liquidity and reducing market inefficiencies like slippage.

1inch released version 2 of its protocol in November 2020, enabling swaps between 21 decentralized exchanges. By boosting market liquidity, the protocol not only reduces slippage on specific trades but also indirectly dampens price volatility across the entire DEX ecosystem.

Conclusion

Get the best company for a 1inch DEX Aggregator Development. They make things happen in a unique way.





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