⛳Introduction

What is an Aggregator?

Liquidity fragmentation is a significant issue in the decentralized finance (DeFi) space, where liquidity is dispersed across numerous protocols. The main objective of an Aggregator is to consolidate this fragmented liquidity into a single, user-friendly interface, allowing users to easily browse and transact.

Especially traders with larger order sizes require deep liquidity to execute swaps without price impact due to liquidity fragmentation. It becomes challenging for them to transact with a single decentralized exchange (DEX) and an aggregator that optimizes for the best return will benefit the m. NeptuneX Aggregator isn't designed for traders with deep pockets only. With any given user input, NeptuneX searches accross it's vast network for the user regardless of their trade size considering a lot of important factors like gas costs, multi-hop swaps, individual AMM mechanics delivering the best price.

Decentralized OTC Markets vs Centralized: Price Discovery

In markets like foreign exchange (Forex), which are over-the-counter (OTC), assets can have different prices across various exchange offices and online brokerage platforms. In contrast, centralized stock markets are regulated centrally, and trading occurs within a single market, making it more efficient. Aggregators aim to bring centralized trading efficiency to decentralized markets by consolidating fragmented liquidity across multiple protocols.

Enabling Efficient Price Discovery in DeFi

Price discrepancies between tokens are often arbitraged by sophisticated MEV (Maximal Extractable Value) bots, causing impermanent loss for liquidity providers (LPs). The root cause of this issue is liquidity fragmentation and asymmetric order flow. When a large trade occurs on a DEX pool, the pool reserves become imbalanced compared to the rest of the market. MEV bots quickly exploit these imbalances by selling tokens from the cheaper pool to the more expensive pool to make guaranteed profits.

Aggregators break orders into smaller pieces and optimize for less price impact, utilizing all available liquidity sources. This makes it more difficult for a single trade to result in arbitrage opportunities. This not only prevents high price impact for traders but also results in less impermanent loss for LPs, promoting healthy and sustainable growth in liquidity depth.

Infinite Range of Tradable Tokens

NeptuneX can be used to trade any tokens in and out on all liquidity sources, not just the major ones. Most DEX interfaces do not display freshly deployed tokens or restrict tokens that are not in their whitelists. Aping fast into new tokens as early as possible is very important for outsized gains. For a new token deployed to a DEX, you need to find which DEX it was deployed to and trade using it's own interface, be mindful of it's underlying AMM mechanics and configuration settings for the swap. NeptuneX offers a familiar interface where users can trade any token deployed on all integrated protocols, abstracting away alll complexities between the trader and its desired assets. NeptuneX constantly monitors the blockchain to quickly make all new tokens available for trading.