Execute Large Swaps with Little Slippage: Stream Swaps on LeoDex

Hi, everyone! Sometimes the obvious things are overlooked. For example, the major part of the transaction volume in any protocol, like Maya or THORChain, is executed by whales who move large amounts of money. What this means is they need to be able to conduct those transactions with low slippage if we want to attract them to our blockchain, and streaming swaps allow for that.

In this context:

• Streaming swaps allow breaking large transactions into several smaller ones
• Gas fees are paid just once for streaming swaps compared to manually executing several transactions
• It improves the efficiency of capital
• Streaming swaps in LeoDex will allow whales to invest large amounts into Hive

It's incredible how this simple concept has had such an impact on THORChain and on the way swaps are executed. What it does is break up large swaps into smaller ones, allowing the pool to be re-balanced by arbitragers in the middle of each operation, giving you the best possible price.

This could be done manually, but besides being inconvenient, a streaming swap counts as one transaction, so gas fee is paid only once. When done manually, all the smaller swaps count as separate transactions, requiring fees for each of them in cases like the Ethereum blockchain.

The main beneficiaries of streaming swaps are whales, who move large amounts of money at once, reducing slippage to a minimum. With Streaming Swap on LeoDex, we will make investing in Hive easier for whales, enabling them to go directly from Bitcoin to Hive with almost no slippage.

The possibilities are incredible, and the potential increase in trading volume once they go live is very favorable.

Posted Using InLeo Alpha