Have you ever felt frustrated while trading an asset in the DeFI Platform? If yes, keep reading. In this blog series of Future of DeFi Trading, we will address a common pain point of many traders in the DeFi World - Slippage.
Have you tried swapping one asset to another in a DeFi Platform and received only less than what is displayed? Then, you have experienced slippage.
What Exactly is Slippage?
Slippage occurs when there is a difference between the expected price of a trade and the executed price.
This usually happens during periods of high volatility or when large orders are placed. In our previous article, we explored how liquidity pools function. Essentially, these pools act as a collective basket containing two assets, facilitating asset swaps in a decentralized setting. When one asset in the pool experiences a surge in demand, and there isn't enough liquidity to maintain the price at which you intend to execute the trade.
Let's take Alice as an example. Imagine Alice wants to swap 1000 USDT for 1000 USDC, expecting a 1:1 trade. However, due to slippage, she ends up receiving less than 1000 USDC. This difference can be frustrating and costly, especially for frequent traders.
Mettalex Zero slippage Trading!
How does Mettalex address this issue? With our unique peer-to-peer (P2P) order book DEX, we eliminate the need for traditional liquidity pools. Here's how it benefits you:
At Mettalex, traders like Alice and Bob can set up trades directly with each other. This direct trading mechanism bypasses the need for liquidity pools, thereby eliminating slippage. When Alice wants to trade 1000 USDT for 1000 USDC, she receives precisely what she sees—no surprises.
Mettalex leverages Fetch.AI AI agent technology to match trades efficiently. These agents operate autonomously, ensuring that every trade executes at the intended price, regardless of market volatility. This provides a fairer trading environment and enhances user experience by providing price certainty.
Benefits to Users
- Transparency and Fairness: Every trader receives the exact amount they agree to during the trade, fostering a more trustworthy environment.
- Cost Efficiency: Eliminating slippage means traders no longer lose money on unexpected price changes. This is particularly beneficial in high-stake trades.
- Simplicity and Accessibility: Our platform is designed to be user-friendly, making it easy for newcomers like Alice to trade without worrying about the complexities of slippage and liquidity pools.
Explore the future of DeFi trading with Mettalex today. Sign up to join our private beta release, join our vibrant community, and experience the benefits of zero-slippage trades for yourself.