🧞EG SmartRouter
Last updated
Last updated
One of the biggest challenges de-centralised exchanges face is the lack of liquidity. If a liquidity pair is not available on your DEX, users will go elsewhere.
Decentralised exchanges (DEX) need to attract liquidity providers so that there are enough funds available for users to transact with. There are many DEXs available on the market, but due to the lack of liquidity, they are not used much.
This can be a serious problem for adoption.
EGSwap solves this problem by introducing EG SmartRouter
If a liquidity pair is not present on EGSwap, instead of getting an "Insufficient Liquidity" or "Pair not found" error, EGSwap will route your transaction via the EGSmartRouter.
The EGSmartRouter acts as a liquidity aggregator, sourcing liquidity from multiple sources, including various DEXs. This will help users find better prices and access deeper liquidity across different platforms.
Another benefit of EG SmartRouter is that after it searches the entire market to get you the best prices if you go ahead with the trade, it will also burn a portion of the token being traded, thus reducing its total supply.
Let's take a look at an example.
Let's say a user tries to buy the Bake token with BNB on EGSwap.
Let's say that the BNB/Bake pair does not exist on EGSwap. The EG SmartRouter will then search the entire market to get you the best available prices. If you go ahead with the trade, we will use a part of the fees/commission collected to burn the Bake token by hosting a burn party, thus reducing its supply.
So by trading on EGSwap, you are not only getting the best prices of any asset being traded, but you also contribute to lowering the supply of your favourite tokens.
EG SmartRouter will also support MEV Bot Protection in future. Read all about it here
As you can see below, EGSwap automatically switches between multiple liquidity sources based on the highest market prices for your trade. This not only gives traders the best prices, but if you have liquidity spread across multiple DEXs, EGSwap can help with auto market making and arbitrage trading on DEXs. As a project this saves you hiring the services of a dedicated market maker to manage prices across multiple liquidity pools.
