Are you tired of losing money due to negative price impact while trading on Base chain?, We are excited to announce the launch of our Dex Aggregator on Base Chain! This new feature allows users to seamlessly trade all tokens on Base Chain at the best available price, regardless of whether the token is listed on IceCreamSwap.
The IceCreamSwap Dex Aggregator is a program that uses a dynamic algorithm to solve the problem of illiquidity. When users input a token on our Dex, the integrated Dex aggregator on our Dex instantly routes across the different liquidity pools of that token on IceCreamSwap and selects the best pool with the best rate.
In addition to providing users with the best prices, the Dex Aggregator also helps to improve the liquidity of tokens on Base Chain. By routing trades across multiple Dexes, the Dex Aggregator helps to create more demand for tokens, which in turn leads to higher prices and a more liquid market.
NB: Liquidity is essential for Decentralized exchanges (DEXes) to function properly. It refers to the amount of money available to buy and sell tokens on a Dex. The more liquidity there is, the faster and more efficient the exchange can operate. It helps to reduce slippage and increases market depth.
Here are some of the benefits of the IceCreamSwap Dex Aggregator:
- Users get the best available price for any token on Base Chain, regardless of whether it is listed on IceCreamSwap.
- Helps to improve the liquidity of tokens on Base Chain, which leads to higher prices and a more liquid market.
- Users can trade tokens seamlessly across multiple Dexes with just a few clicks.
- Users enjoy a more efficient and affordable trading experience.
How the Dex Aggregator works:
The Dex Aggregator works by routing across multiple liquidity pools on different Dexes to find the best price for a given token pair. This means that users can always be sure they are getting the best possible deal, even when trading tokens that are not listed on IceCreamSwap.
If a user wants to trade a token that is not listed on IceCreamSwap but has liquidity on other Dexes, the IceCreamSwap Dex Aggregator will instantly route across the whole DeFi ecosystem on Base Chain, find the best liquidity pool for the input token, and execute the user’s swap order at the best available price.
- Quick illustration
Let’s say User A wants to make a swap trade on Base Chain. He inputs the token address of a token that is not listed on IceCreamSwap Dex but the token has liquidity on another Dex (DEX D), the IceCreamSwap Dex Aggregator instantly tracks and routes across the various liquidity pools of the input token on different Dexes (DEX A,B,C,D) and finally selects the pool with the best price.
At the end of the trade, User A gets the best buying/selling price for the input token although the token isn’t listed and doesn’t have liquidity on IceCreamSwap Dex
NB: With each trade, the IceCreamSwap Dex Aggregator executes on Base chain, the transaction is registered on the Dex whose liquidity was utilized. This means that if DEX D liquidity pool offers the best price for the user, DEX D will be utilized and the transaction will be recorded on the blockchain.
In summary: the IceCreamSwap Dex Aggregator is designed to present users on Base Chain with the best available price while trading. It routes across the liquidity pool on IceCreamSwap Dex (for tokens listed on IceCreamSwap) and the liquidity pool of other Dexes (for tokens not listed on IceCreamSwap) presenting users with the best available price.
Users save more by mere trading on our Dex as they are protected from huge negative price impact, especially when trading on tokens with no or little liquidity on other Dexes.
official medium: https://icecream-swap.medium.com/
IceCreamSwap wiki : wiki.icecreamswap.com/
Base chain website: https://base.org/
Base chain explorer: https://base.blockscout.com/