🔮BasedSwap's edge
Why using BasedSwap can be more effective than interacting directly with DeFi services
Last updated
Why using BasedSwap can be more effective than interacting directly with DeFi services
Last updated
This page outlines the key advantages you gain from utilizing BasedSwap over directly engaging with decentralized finance services or employing an alternative middleware solution.
BasedSwap meticulously searches through numerous decentralized exchanges to obtain the most favourable exchange rates. Leveraging advanced pathing analysis, it thoroughly examines all possibilities, whether that involves splitting orders across multiple exchanges or exploring alternative swapping routes.
BasedSwap integrates with many well-known decentralized exchanges, such as Uniswap, Kyber, Curve, DeBridge DLN, Li.Fi, and the 0x network.
When you choose a trading pair on BasedSwap, like ETH to DAI, it carefully checks the rates for that pair on each exchange. It considers factors like the volume of your transaction to give you the best deal possible.
PathFinder serves as BasedSwap's unique feature, enabling it to consider indirect trading routes (comprising 2 or more hops) and seamlessly interact with various decentralized services, such as lending platforms like Aave or Compound (when trading on Ethereum)
BasedSwap's routing algorithm leaves no stone unturned as it explores all relevant paths, even those involving additional hops. For example, when purchasing ETH with sUSD, a direct sUSD to ETH swap may not be the most efficient route.
To secure the best rate, it might involve going from sUSD to USDT/DAI before finally reaching ETH. You need not compute this complexity across all decentralized exchanges by yourself—Multipath handles it for you!
From the swap fees, 1.5% of the 2% collected is rewarded to token holders, while 0.5% is kept by the treasury. For the bridge fee, the full 0.2% is kept by the treasury. The fees stored in the treasury will be used to cover costs within the BasedSwap system.
Leveraging the powerful DLN system built by DeSwap, we have created CrossBased, a system for interconnecting EVM and non-EVM chains.
CrossBased operates as an on-chain system of smart contracts where users, referred to as makers, place their cross-chain limit orders. These orders specify a certain amount of input tokens on the source chain (giveAmount of the giveToken on the giveChain) and indicate the desired outcome on the destination chain (takeAmount of the takeToken on the takeChain). The provided amount is locked by the DlnSource smart contract through CrossBased implementation Contract on the source chain. Any user with sufficient liquidity, known as takers, can attempt to fulfil the order by interacting with the DlnDestination smart contract on the destination chain (directly or through CrossBased contracts), supplying the requested amount of tokens the maker is willing to take. Upon order fulfilment, the supplied amount is promptly transferred to the receiver, and a cross-chain message is sent to the source chain via the CrossBased infrastructure to unlock the funds, effectively completing the order.
One cool thing about BasedSwap is that it lets you not only bridge tokens between EVM chains like BASE and BNB, but also between Solana and EVMs. This means you can connect both your EVM wallet (like Metamask) and non-EVM wallet (like Phantom) at the same time. Having both connections ensures that you always bridge to the right wallet. So, you won't accidentally copy and paste the wrong address and lose your funds anymore.
When bridging from Solana to an EVM chain, you need to connect both wallets so the bridge knows where to send your tokens. Without both connections, the bridge won't work.
For bridging from one EVM chain (like BASE) to another (like BNB), you only need one wallet connection. This way, you always bridge using the same wallet, which helps prevent mistakes when copying and pasting addresses and losing your funds.
Route insurance is like a safety net for your swaps in BasedSwap. It gives you extra protection when you're moving your assets between different blockchains using a bridge. If the bridge gets hacked during your swap and you don't have route insurance, you might lose everything you're swapping. But with route insurance, you're covered. If there's a security problem with the bridge, the insurance ensures you get all your assets back. So, even if something unexpected happens, your money stays safe.
