ActaFi Swap Update - Liquidity Aggregator

The ActaFi Ecosystem development is not affected by the bear market. With the upcoming release of the liquidity aggregator to the ActaFi Testnet, we dive deeper into the subject to help everyone understand the benefits of the liquidity aggregator.

What is a liquidity aggregator

A liquidity aggregator accumulates the liquidity from other (existing) AMM protocols, or swaps, to provide the best possible outcome for the trader. The AMM router calculates constantly the best possible trading route of direct liquidity, and indirect liquidity. 

The direct liquidity aggregation only connects with the specific token pair liquidity pools, for example, ACTA - AVAX, on the integrated swaps to the aggregating engine. 

Indirect liquidity aggregation is far more complex, but as a result, provides an enormous beneficial difference for the trader. The trading route uses steps in between to come to a better outcome, for example, ACTA - USDT - AVAX. The AMM protocol always routes the best potential outcome for the traders. On traditional swaps, such as TraderJoe and Pangolin, the user trades only to the liquidity pools that are set up within the platform, whereas with ActaFi Swap users trade with the liquidity provided on other swaps and routes both direct, and indirect, liquidity token pairs.

This image shows the split of 1 $ACTA into $WAVAX through multiple AMM protocols, using direct and indirect routing.
This image shows the split of 1 $ACTA into $WAVAX through multiple AMM protocols, using direct and indirect routing.

A quote from our CEO Christof Waton:

" Trading through a liquidity aggregator will always provide the best possible outcome for the trader, which is our goal. We started with a normal swap, like the Uniswap V2 model, and are close to releasing the ActaFi Swap upgrade, a liquidity aggregator, to the ActaFi testnet. Shortly after that, we will provide a module that reflects what the outcome would have been on other swaps within the Avalanche ecosystem, to provide transparency to the users on why ActaFi Swap is the best for the Avalanche Ecosystem."

Benefits for ActaFi Swap user

We mentioned earlier that the ActaFi Swap aggregates the liquidity from other AMM protocols within the same network, currently Avalanche, so they don’t need to:

  • Analyse the dept of liquidity pools on multiple AMM protocols
  • Calculate the order splitting to those AMM protocols to reduce slippage
  • Take risks by performing the time-consuming analysis and calculations. The market is too volatile to perform these calculations manually and therefore the trading opportunities are already lost.

ActaFi Swap is the best place for traders that want to tap into all Avalanche-based AMM protocols’ liquidity.

The first Avalanche native liquidity aggregator, with liquidity pools

The ActaFi Swap v1 is an AMM protocol that provides the best possible trading route within the liquidity pools, hosted on ActaFi Swap. ActaFi Swap v2, the liquidity aggregator, provides the best possible trading route within the Avalanche DeFi ecosystem while having the internal liquidity pools (v1) also connected to the liquidity aggregator.

In the current market there are liquidity aggregators that have multiple networks integrated, such as 1inch. However, there are no liquidity aggregators that provide liquidity pools, or Farming pools, which would support liquidity growth on the Avalanche network.Besides the fact that the ActaFi Ecosystem is a complete DeFi suite, with multiple DeFi products, it’s an accidental innovation that we bring to the table that’s already filled with the other innovations Acta Finance develops.

ActaFi Swap v2, what’s next?

The ActaFi Swap is the centerpiece of the ActaFi ecosystem and will get multiple significant updates:

v1 - AMM protocol

v2 - liquidity aggregator - We are here 

v3 - RFQ model

v4 - Active Liquidity Management 

v5 - Cross-chain liquidity aggregator

v6 - Margin trading

With the liquidity aggregator arriving on the ActaFi testnet, we can structure the bounty campaign for mass testing, prior launching the ActaFi Swap to Avalanche mainnet as a stand-alone product, since it doesn’t require the ACTA token to be circulating.

The ActaFi products are EVM compatible, so releasing the ActaFi Swap to other EVM-compatible networks is being analyzed by the team as we speak to bring more exposure to the ActaFi Ecosystem and innovational products.

About Acta Finance

Acta Finance is a two times award-winning (Malta 2021, Toronto 2022) cross-chain DeFi Suite governed by smart contracts that innovates the DeFi industry with the ActaFi Ecosystem. Acta Finance introduces a Referral Program, Address Milestone Rewards, and a DAO Program to support platform growth and user activity-based rewards. By offering derivatives in a decentralized way, through ActaFi Swap,  Acta Finance aims to counter the manipulated liquidation events on centralized entities by using a decentralized price feed and a cross-chain liquidity aggregation.

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