DeFi platform SpiritSwap has integrated layer-3 blockchain infrastructure solution Orbs’ dTWAP advanced trading order functionality. The integration now enables SpiritSwap to offer new trading options to its users.
Founded in 2017, Orbs is a public, open, decentralised blockchain infrastructure that uses Proof-of-Stake (PoS) consensus to be supported by a network of permissionless validators.
Orbs functions as a separate decentralised execution layer running between the application layer, the existing layer-1 and layer-2 solutions, using a multi-layered blockchain stack. This strategy offers a decentralised backend for smart contracts, which expands the capabilities of Web3 sectors like DeFi, NFTs, and GameFi.
“Today’s decentralized trading infrastructure lacks liquidity, meaning any large order flow can cause significant adverse price impact. If we want to attract more sophisticated institutional investors to the decentralized ecosystem, alleviating these conditions with robust functionalities like TWAP is paramount,” SpiritSwap representative said in a statement.
Swap and limit orders are now supported by the majority of DEX-AMMs. By integrating Orbs’ completely decentralized, permissionless, and composable dTWAP protocol, SpiritSwap will be the first decentralised exchange (DEX) and automated market maker (AMM) to allow advanced trading orders.
“As the first-mover in this race, SpiritSwap’s dTWAP integration will showcase the powerful capabilities of our smart contracts and how they can expressly benefit both the liquidity and trade execution needed to support complex strategies,” SpiritSwap added.
Users of SpiritSwap will be able to perform complex trading techniques, such as algorithmic and automated strategies, that are not currently enabled by other DeFi platforms thanks to the integration, which is intended to increase liquidity on the platform.
Decentralized time-weighted average price, or dTWAP, is one of the most popular algorithmic trading techniques in the centralised finance (CeFi) industry. By dividing the initial order into several smaller ones that are individually executed at predefined intervals over a certain period, it is used to reduce any large order’s total footprint in a market.
Layer-3 infrastructure provided by Orbs guarantees that orders are executed at fair prices and with no loss of decentralisation or security. SpiritSwap customers can enhance their trading methods with Orbs’ dTWAP to gain access to features like Dollar-cost Averaging (DCA), placing market orders with longer intervals and extended durations, and engaging automated DCA without any extra input.
Additionally, SpiritSwap customers can specify their chosen parameters, including length, size, interval, market orders, and limit orders from a single screen, thanks to Orbs’ dTWAP, which has an intuitive and simple-to-use interface. Together, these functions give consumers more flexibility while taking into consideration factors like market volatility and gas prices.
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