How it Works
- 1.Price quotation from DEXes and CEXes
- 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
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 on CEXes
- Protects user interests by subsidizing slippage losses with OOE tokens
- Utilizes transparent pricing mechanisms without charging additional protocol transaction fees
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 here.
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.