Aug 16, 2021
What is OpenOcean?
All For Your Trading. DeFi & CeFi Full Aggregation Protocol
1. Introduction
OpenOcean is the world’s first full aggregation protocol for crypto trading that source liquidity from DeFi and CeFi, and enable cross-chain swaps. Our intelligent routing algorithm find the best prices from DEXes and CEXes, and split the routes to provide traders the best prices with low slippage and fast settlement. The function is free to use, OpenOcean users only need to pay the normal blockchain gas fees and exchange fees for the trades, which are charged by the exchanges and not OpenOcean.
OpenOcean aggregates major exchanges (DEXes and CEXes) and across Ethereum, Ethereum Layer 2 such as Loopring and Polygon, Binance Smart Chain, Solana, Ontology, TRON, and is the first full aggregator on Binance Smart Chain, TRON, Ethereum Layer 2, and Binance exchange. We continue to aggregate public chains and exchanges based on the voice of the community.
Besides aggregation of swaps, OpenOcean will continue to aggregate derivative, yield, lending and insurance products, and launch it’s own combined margin products and intelligent wealth management service. OpenOcean provides API and arbitrage tools for users to operate automated arbitrage strategies.
The vision is to build a full aggregator for crypto trading that increase capital efficiency and serves as a bridge connecting the isolated islands in the current fragmented DeFi and CeFi markets. Regardless of being small individual investor or large institution, everyone should have the opportunity to trade at the best prices and apply own investment strategies on various crypto asset classes.
OpenOcean has its own token, OOE, that serves utility and governance.
2. Investors
OpenOcean have successfully completed strategic investment and private placement fundraising by industry well known investors. The strategic round investment is led by Binance, other strategic investors include Multicoin Capital, LD Capital, CMS, Kenetic and Altonomy. In the private round, the investors are Altonomy, LD Capital, DAOMaker, OKex Blockdream ventures, AU21, FBG, TRON Foundation, Asymmetries Technologies and LIAN Group.
3. How OpenOcean works?
To get the best trade, it’s important to access exchanges with the best prices and deep liquidity. OpenOcean helps users with this by searching several DEXes and CEXes for prices and liquidity, and then split the order into different routes to get the best trade.
DeFi has given rise to a lot of DEXes such as Uniswap and PancakeSwap. Each DEX has their own separate pools and liquidity that cannot conveniently be accessed at the same time. The problem is that each pool has different prices and not always deep enough liquidity to provide low slippage, especially when users are making large volume trades. The OpenOcean protocol solves this by sourcing, prioritizing/optimizing, and splitting liquidity routes across different DEXes in order to maximize the overall return on your trade.
Normally when doing a trade on OpenOcean the protocol will execute these 3 steps:
- Price quotation from DEXes and CEXes
- Optimize and find the best trading routes for best price with low slippage
- Communicate the prices to the user and execute trades
Protocol algorithms and smart contracts
OpenOcean protocol consists of public smart contracts deployed on each aggregated public chain and proprietary technology such as discovery and routing algorithms. OpenOcean utilizes an optimized version of the Dijkstra algorithm (D-star) which then splits routing between different protocols for better transaction rates. This ensures that users get the best price on the market with less gas consumption and lower slippage.
- Applies an optimizing algorithm based on Dijkstra and D-star to get the initial best route
- Additionally it constantly optimizes the routes based on machine learning using platform data
- Offers the best price to users by comparing the prices on aggregated DEXes with the best price on CEXes
- Protects user interests by subsidizing slippage losses with OOE tokens
- Utilizes transparent pricing mechanism without charging additional protocol transaction fees
The public smart contracts facilitate the transactions between users and the exchanges through an API which is either accessed via the OpenOcean interface or user’s own API setup. The contracts include several inner contracts that each perform a specific function such as swap, price quote, route, calculate, optimize, and also communicate with the algorithms.
#OOE #OpenOcean #DEXAggregator #DEFI
