Decentralized exchanges continue to build strong momentum in the crypto space. However, there are only so many order types users can experiment with, leaving something to be desired. SpiritSwap wants to upset that status quo by integrating Orbs’ dTWAP solution.
Orbs’ dTWAP Comes To SpiritSwap
Building a decentralized exchange and automated market maker from the ground up is a challenging task. Ensuring that platform continues to grow and attract users and liquidity is a different matter. Competing with behemoths like Uniswap, PancakeSwap, and other projects is tricky. One way to stand out from the pack is by enabling more advanced trading functionality. SpiritSwap sees merit in that approach and has beefed up its trading experience.
More specifically, the popular DEX-AMM has integrated Orbs’ dTWAP module. Rather than merely providing swap and limit orders, users can benefit from advancing trading orders without compromising decentralization. In addition, SpiritSwap’s team expects this module to help improve platform liquidity. Giving traders the option to finetune their trading strategies on a decentralized exchange can create a strong competitive edge.
The purpose of dTWAP (decentralized time-weighted average price) is to reduce the impact of marge market orders. All big trades are broken into multiple smaller orders, which will execute at predetermined intervals. In addition, Orbs’ implementation ensures everything occurs at optimal prices and by paying fair network fees. That will be a boon for those engaging in dollar-cost averaging and entering market orders with longer intervals and durations.
Most crypto traders are familiar with dTWAP through centralized platforms. It is common to see that functionality there, as it powers almost all algorithmic trading strategies. Bringing the feature to a decentralized exchange creates a new incentive for people to check out the DEX-AMMs supporting such solutions. SpiritSwap users can set up various parameters through an intuitive UI, enabling broader flexibility.
Ensuring Fairer Trading Conditions
Although Orbs’ dTWAP will introduce more liquidity and flexibility, it also helps protect traders somewhat. More specifically, it helps negate the impact of whales selling their holdings and crashing markets in mere minutes. Those incidents are often the result of limited DEX-AMM liquidity and have caused many projects to endure unnecessary volatility. It also turns away institutional investors from using decentralized exchanges.
Furthermore, supporting complex strategies is an essential step for the DEX ecosystem. Users should not compromise security or decentralization to trade how they want. Unfortunately, it was impossible to use a thorough strategy without signing up for a centralized trading platform. Orbs’ dTWAP seems to counter that need and may offer DEX-AMMs like SpiritSwap a new lease on life.