Technical Details

Smart Order Routing

DZap’s aggregation engine leverages smart order routing to evaluate liquidity pools and trade routes in real-time. This involves sophisticated algorithms that consider multiple factors to ensure the most efficient execution of trades:

• Price Impact: The algorithm calculates the potential impact of a trade on the price of an asset in a specific liquidity pool.

• Available Liquidity: By evaluating the available liquidity across different pools, the engine can determine the optimal sources to fulfill an order, thereby reducing slippage and ensuring sufficient liquidity for larger trades.

• Gas Fees: The algorithm also considers the gas fees associated with executing trades on different platforms, aiming to minimize transaction costs for users

Multi-path Splitting

Orders are dynamically split across multiple exchanges and liquidity sources. This reduces slippage, particularly for large trades, by distributing the trade volume in a way that minimizes the price impact on any single pool. The pathfinder component of DZap’s aggregation engine determines the optimal way to split an order.

Pathfinder and Optimization

The pathfinder component of DZap’s aggregation engine plays a critical role in identifying the most efficient routes for trades. It uses graph algorithms to map out potential paths and optimizes for factors such as execution speed, cost, and liquidity depth.

These technical components ensure that DZap’s aggregation engine provides users with the best possible execution of their trades, optimizing for price, liquidity, and transaction costs while facilitating seamless cross-chain operations.