The popular DEX trading platform QuickSwap zkEVM says that after integrating with, it can now offer its users much better pricing on asset swaps balls' decentralized liquidity hub that opens up third-party sources of liquidity.
With the integration, QuickSwap zkEVM can offer users some enticing benefits including lower transaction fees, MEV (Maximum Extractable Value) protection, improved capital efficiency, and lower interest rates on swaps. The best thing is that the user does not notice anything except the benefits since all transactions take place in secret and without his knowledge.
The lack of liquidity on DEX platforms is one of the most pressing challenges in the DeFi industry. Because most DEXs are essentially fragmented and rely on their own incentivized liquidity pools, they suffer greatly from the problem of slippage, where trades are executed at a significantly different price than the quoted one. Slippage is a direct result of a platform not having enough liquidity to execute the trade immediately and all at once, and is particularly common on larger trades. In some cases, the trade must be split into multiple transactions, resulting in higher gas fees and each swap being executed at different rates.
With Liquidity CenterOrbs goes some way to minimizing slippage and allows users to access a pooled liquidity pool that includes both the DEX's own liquidity and on- and off-chain reservoirs. It gives DEXs access to far more liquidity than they can provide on their own and very often means cheaper trades for the end user.
Like all good DEXs, Orbs' Liquidity Hub is completely decentralized, permissionless and composable, and funds always remain with the user, meaning it is a non-custodial solution.
With today's integration, traders using QuickSwap on Polygon's zkEVM network can access Orbs' extensive Layer 3 infrastructure to access external liquidity, resulting in better price offerings and reduced price impact.
Liquidity Hub works by redirecting order requests from the DEX's own liquidity pools and allows the user to tap into additional sources of capital provided by third-party providers that compete to settle swaps using on-chain liquidity sources such as AMM pools and use private stocks. Additionally, Liquidity Hub makes decentralized orders available to institutional and professional traders via an API, allowing them to also place bids to complete trades. The beauty of this is that while it always looks for the best possible price by searching these sources, it executes these transactions without the DEX's AMM, so there is no additional impact on price.
In addition, it always guarantees a better price or your money back, so to speak. If the Liquidity Hub cannot find a better price, it returns the order to the DEX AMM smart contract so that the order is executed normally. And since this all happens in milliseconds, this means that users only ever benefit from having their orders fulfilled quickly and always at the best possible price.
For the end user, they will not notice any difference in the way their trades are executed on QuickSwap zkEVM other than better rates. The user only ever interacts with the DEX's regular interface, so there are no additional complications when making an exchange and every transaction is executed instantly and with minimal to no latency, meaning it is still possible to profit from real-time price movements .
As always, the user's funds remain in the connected wallet at all times until the trade is executed, ensuring their funds are completely safe.
The Orbs Liquidity Hub on QuickSwap zkEVM is another important milestone for the DeFi industry and an important validation of the efficiency of the project, which aims to become the industry standard for achieving DEX price swaps. This is the third deployment of the Liquidity Hub protocol, previously deployed on Polygon and QuickSwap THEN ON on the BNB chain.
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