Wardenswap is not just a decentralized exchange (DEX), it is an aggregator that helps users find the best price for converting a token.
Using WardenSwap users are possible to receive much better rates than other DEXs.
In addition, if there is another pool that has a price it is ready to be arbitrated. Wardenswap will also pick up deals for users. This project is not just an exchange, it can be a gateway to all existing decentralized exchanges.
How WardenSwap Works
Today, AMM is the art of decentralized exchange because the order book system will not work if the market is not liquid and all transactions on the blockchain cost money. No one really wants to pay unnecessary fees to make an offer without knowing if their offer will be a good fit or not.
Well, this is how AMM solves this problem. By allowing token holders to provide their assets as liquidity into the pool to earn transaction fees on every transaction made to the pool.
AMM uses a mathematical formula that takes into account the liquidity of the current trading pair and provides traders with instant quotes. In other words, instead of referring to the order book for prices, users will get them as a result of an algorithm.
All DEXs on Binance Smart Chain are AMMs, it exists to solve a major problem that has been a major source of concern for many DEX liquidity. However, it brought a new set of problems, such as high slippage and permanent losses for liquidity providers.
Here comes the solution. Wardenswap prices from multiple pools to find the best price across all pools. Not only that, Wardenswap also divides the number of trades on several routes in one transaction to make trades make better prices as you can see in the following image:
For example, if a user wants to trade BNB to BUSD but their trade will result in a high price impacting one pool, Wardenswap will split the trade into 2 different routes and trade 2 pools simultaneously. So the bigger the DEX market, the better price Wardenswap will give you. .
Moreover, Wardenswap can also find deep routing if there is an in-between route to make the price better, Wardenswap will include it between transactions automatically.
For example, if a user wants to exchange BNB to BUSD. But there is a route between WAD-BNB which can make this trade better even if the route is in another pool, WardenSwap will convert BNB to WAD and WAD to BUSD.
Want to know all the latest information about WardenSwap? You can get it here