The rising popularity of the digital currency has increased the adoption and use of decentralized exchanges over the past years. Though decentralized exchanges provide access to diverse tokens available in the market, users don’t receive appropriate prices while crypto trading due to insufficient liquidity. This is why users visit different decentralized exchanges to compare prices and swap tokens, which turns out to be a hectic and time-consuming task.
To streamline this tedious process and to provide crypto traders with convenience during crypto trading, Metamask (a renowned cryptocurrency wallet) introduced DeFi swaps: a price information aggregation feature that collects information from professional market makers and multiple decentralized exchanges such as Uniswap, AirSwap, Paraswap, and many more to make sure that users get the best pricing options with minimum network fees.
If you’re looking to invest your money in DeFi crypto wallet development or have started developing your own DeFi wallet to get the maximum benefits for your business, then this blog is written for you. In this post, we’ll explain the primary benefits of integrating DeFi swaps in a decentralized crypto wallet.
Benefits of Integrating DeFi Swaps in Decentralized Crypto Wallet
The below-listed are some noteworthy benefits of integrating DeFi swaps in a decentralized crypto wallet:
The first benefit of integrating DeFi swaps during the decentralized crypto wallet development process is that the user can access real-time information from multiple resources. The prices displayed on decentralized protocols depend on the type of token and the size of a swap. Instead of searching for the prices offered by various decentralized exchanges, users get access to the largest selection of tokens and the greatest liquidity assets with the most competitive prices.
Integrating DeFi swaps into the wallet while DeFi crypto wallet development plays a significant role in reducing the number of token approvals. There is no need to approve every token on multiple aggregators and decentralized exchanges for each trade. DeFi swaps within a crypto wallet enable users to approve a token only once, which not only reduces the path for token swap execution but also reduces the gas cost.
Finding the best trade is a time-consuming and hectic task. In order to locate the best trade, every aggregator has to search multiple paths. The gas fee to execute a transaction varies from platform to platform. It is an amount that users have to pay to perform some actions on a particular Blockchain. Though users get information from multiple decentralized exchanges, it becomes easy to determine the liquidity source with the most affordable gas fees.
A mechanism that protects a user from high-risk situations and instant liquidations is known as slippage protection. Due to insufficient liquidity on a particular decentralized exchange, large swaps are subject to higher price swings. As pricing information is available at a single place, users can easily track the slippage impact on the final price offered by a decentralized exchange.
Due to the availability of a variety of pricing options, the transaction failure rate is reduced to a great extent. For instance, the swapping functionality offered by the MetaMask Wallet filters out the trades with the highest chances of failure that allows users to enjoy a very low average failure rate of approx 4.4%.
Given the ever-changing variables within token pair liquidity, a single source of liquidity often results in a lack of market depth and high slippage. Data aggregation functionality offered by DeFi swaps provides users with accurate information regarding the crypto market and helps them measure the liquidity ratio conveniently.
Conclusion To conclude, integrating DeFi swaps into your crypto wallet while DeFi crypto wallet development can provide your users with the benefits listed above and enhance trade flow efficiency. As there are countless benefits of integrating DeFi swaps, entrepreneurs in the crypto market have started developing DeFi wallets. However, the process of integrating DeFi swaps could be challenging and time-consuming. In such a situation, the consultation could be sought from an experienced DeFi crypto wallet development company.
At Antier Solutions, we are equipped with a team of more than 400 experts who work dedicatedly to provide the best DeFi crypto wallet development services to our clients. Whether you want to create your own DeFi wallet or need any kind of development solutions, we effectively cater to your needs with our business-oriented services. Our DeFi crypto wallet solutions are packed with features like in-chat transactions, cross-platform compatibility, QR code scanner, multi-layer security, easy portfolio management, KYC verification, OTC trading, NFC support, automatic conversion rates, and many more.
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