OpenOcean
  • 🌊Welcome
  • The Protocol
    • ▢️Introduction
      • πŸ”„How it Works
      • πŸ’²Fees Overview
      • πŸ”Security & Audits
      • 🎯Achievements
    • πŸ’™OOE Token
      • ℹ️OOE token contract migration
      • πŸš€OOE Token Migration Tutorials
        • πŸͺ™Migrate OOE Token
        • πŸ§‘β€πŸŒΎMigrate LP in Farming
        • 🏦Migrate Staking in Vault (Ethereum Only)
  • PRODUCTS
    • 🌐DEX Aggregator
      • πŸ’¦DEXs Integration
      • πŸ†“Ultra Mode
    • πŸ“ˆLimit Orders
      • How to place a limit order
      • Limit Order FAQ
    • 🎯DCA
      • How to use DCA
    • πŸ§‘β€πŸŒΎFarms & Vaults
      • How to participate in farm
      • How to participate in vault
    • πŸ“ŠPerpetual Futures
      • How to make Perpetual Swaps
    • 🐒OpenOcean DAO
      • πŸ“₯Proposals & Voting
      • πŸ’¦xOOE Staking
      • β›½Gas Refund
  • Developer
    • APIs
    • Supported Chains
    • Contracts of Chains
  • Trade on OpenOcean
    • πŸ‘¨β€πŸ’»Tutorial - Connect Wallets
      • MetaMask Wallet
      • Trust Wallet
      • Coinbase Wallet
      • SafePal Wallet
      • Phantom Wallet
    • πŸ”„Tutorial - Swap Token
      • Swap on Ethereum
      • Swap on BNB Chain
      • Swap on Arbitrum
      • Swap on Base
    • πŸ“RPC Adjustment
    • ❗Custom Token
  • Appendix
    • ❓FAQ
    • πŸ’ Media Kit
    • πŸš€Social Media
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  1. The Protocol
  2. Introduction

How it Works

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Last updated 8 months ago

  1. Price quotation from DEXes

  2. Optimize and find the best trading routes for the best price with low slippage

  3. Communicate the prices to the user and execute trades

Protocol algorithms

The 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

  • 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

  • Protects user interests by subsidizing slippage losses with OOE tokens

  • Utilizes transparent pricing mechanisms without charging additional protocol transaction fees

At the time of writing, the protocol has implemented swap, manual arbitrage, liquidity mining, and governance. Automated arbitrage SaaS, combined margin pool, and cross-chain swap are currently in development.

The public smart contracts facilitate transactions between users and exchanges through an API, which is either accessed via the OpenOcean interface or the user’s API setup. The contracts include several inner contracts that each perform a specific function such as swap, price quote, route, calculate, optimize, and communicate with the algorithms. To view our smart contracts .

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