BSCEX’s SwapX is a decentralized liquidity aggregator that automatically acquires users the best pricing available for Binance Smart Chain cryptocurrencies swaps.
Most popular Automated Market Makers (AMMs) in the market face three main challenges: high fees (compared to centralized crypto exchanges), low liquidity, and high price slippage. The AMMs that were built on the Ethereum blockchain could not function very well during some market conditions that cause absurd expensive transaction fees and still low liquidity and slippage. Other AMMs that were built on Binance Smart Chain has low fee, fast transaction advantages, but still suffered from low liquidity and high price slippage. Binance Smart Chain is also a relatively new public blockchain, it needs more time to develop cross-chain solutions and dApps that work effectively and more popular than those are on the Ethereum blockchain.
As an advocate for the development of the Binance Smart Chain, BSCEX Ecosystem is committed to providing an ultimate solution that aims to minimize the problem of low liquidity and high price slippage by building a new generation of AMM with Cross-Chain Layer 2 called BSCex SwapX.
BSCex SwapX is the key product of the BSCex ecosystem. It is similar to Binance’s Liquid Swap but designed as a decentralized, trustless, non-custodial application on BSC. While Binance’s LiquidSwap is a centralized service that supports swapping between stablecoins and fiats while SwapX supports more stablecoin and cryptocurrency pairs. SwapX users can easily swap between BUSD and USDT and many other cryptocurrency pairs. SwapX will help users finding the best rate and liquidity to facilitate the transaction. On 16 January 2021, the total liquidity that SwapX can take advantage of is over 200 million dollars.
To solve the problem of low liquidity that causes the high price slippage on some popular AMMs on Binance Smart Chain. This high price slippage is closely tied with market depth and measures the difference between the expected price of a trade and the price level arrived at after execution. High price slippage typically indicates a market is less liquid. As consequence, Binance Smart Chain and Ethereum blockchain users cannot execute the order with high volume without causing a big slippage.
SwapX solved the problem of lacking liquidity using our unique technology that is called Cross Liquidity Layer 2 to facilitate transactions with minimal slippage.
The BSCex Aggregating Engine will find the AMMs with the best liquidity among BSC’s AMMs to divide, match, and execute user’s orders. Aggregating Engine will divide the order into many parts and execute each part in different AMMs to lower the risk of price slippage.
For example, BSCex users want to swap 2000 BUSD to BNB. The price slippage of BakerySwap for 2000 BUSD in trading volume is 0.2%. Each $500 in trading volume will cause a 0.05% slippage in price. While PancakeSwap slippage is 0.12% and a $500 in trading volume will cause 0.105% slippage. Our BSCex Aggregating Engine will calculate and divide 2000 BUSD into two smaller orders. One order of 1363.636 BUSD is executed on PancakeSwap and another order of 636.364 BUSD is executed on BakerySwap. The total price impact/slippage is 0.097%, much lower than executing an order on just one single AMM.
This example shows clearly the advantage of BSCex’s SwapX compared with other AMMs, that make BSCEX become the best option to trade small and low cap cryptocurrencies on Binance Smart Chain.
At some points, due to crypto market volatility, buying and selling BNB on BSCex’s SwapX is even cheaper than trading BNB on Binance.com.
For more information, or if you wish to stay up to date on the project, check out BSCex Ecosystem’s media and social media pages.
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