Basic knowledge about transactions on OpenOcean
Ø What is OpenOcean?
OpenOcean is a DEX aggregator that provides users with the best SWAP price possible on various chains. OpenOcean has already aggregated mainstream DEXes currency pairs on ETH,BSC&ONT.
Cross chain swaps: OpenOcean supports cross chain swaps. We will release a new version with the function of cross chain swaps between ETH/BSC and ETH/ONT soon.
Ø What can you do on OpenOcean?
1. Swap with the best price and lowest slippage possible on market.
2. Arbitrage between DEXes and CEXes.
3. Arbitrage between DEXes.
Ø What kind of users can Swap on OpenOcean?
Any user with a wallet can do Swap transactions on OpenOcean. OpenOcean is the window to make swap transactions and automatically finds the best swap price and lowest slippage possible on market for you. If you want to swap across a specific DEX, OpenOcean also offers you the option to choose the DEX you preferred.
Ø When will arbitrage opportunity exists?
DEXes rely on Oracle for price feeding and most of them use AMM mechanism, resulting in price differences between DEXes as well as between DEXes and CEXes. Arbitrage opportunities are there by nature all the time.
Ø Arbitrage between DEXes and CEXes
Take the case as an example, the user has 1000LINK on Binance account. The LINK/USDC P2P price on Binance is 12.5987. At the same time, the user inputs 1000 LINK on OpenOcean to find the best swap price for LINK/USDC. The best price found by OpenOcean is 12293USDC. LINK/USDC currency pair on CEX(Binance)has better price compared to the price on DEXes. The user exchange 1000LINK for 12293 USDC on Binance and exchange 12293 USDC for 1024.8 LINK on OpenOcean at the same time. The net gain of the arbitrage transaction is 24.8LINK, and the net profit ration for the transaction is 2.48%.
Ø Arbitrage between DEXes
Users can swap with the best price on OpenOcean, and then swap back to make profits if there is room for arbitrage.
Ø What kind of users can do Arbitrage transactions on OpenOcean：
1. All DEX users.
2. Users with accounts on both Wallets and CEXes.
3. Institutional investors and traders with arbitrage strategy. OpenOcean provides tailor-made API and services
4. Users want to hold a specific token for some time and would like to make profits by holding the token at the same time. Arbitrage is a risk-free option for them.
5. New coin holders usually find great arbitrage opportunities.
Ø Wallets supported by OpenOcean
ETH: all mainstream wallets on ETH, MetaMask, Trezer, Ledger, Dapper, Formatic etc.
BSC: MetaMask, more to be added
ONT: ONTO, Cyano