GAREX Algorithm

GAREX Algorithm is an algorithm to find the optimal swap path for every new block, enabling swaps with reduced price impact and slippage. It aids traders in minimizing slippage and trading risks by determining the best trading route. GAREX Algorithm can consistently find superior swap ratios, ensuring the protection of traders' assets during exchanges.

Routing

GAREX Algorithm utilizes the composability of DeFi to tap into all available liquidity sources on the chain, leveraging the permissionless nature of most DeFi liquidity pools.

When sourcing liquidity, there are six different methods for routing sell tokens:

• Direct Swap. Involves finding the optimal swap path where all sell tokens pass through 1 DEX, without splitting.

• Multi-hop Swap. Involves finding the optimal swap path where all sell tokens pass through multiple DEXs sequentially, without splitting.

• Batch Swap. Entails splitting sell tokens across multiple DEXs to find the optimal swap path, with each split amount not passing through other DEXs.

• Multi-Hop Batch Swap. Combines these concepts, linking batch swaps in a serial manner to find the optimal path.

• Linear Split Routing. The most common method, where multi-hop batch swaps are executed in parallel.

• Unified Routing Swap. The most advanced routing method, aiming to minimize gas fees by merging overlapping paths among swap components. This approach significantly expands the search space to find the optimal path and reduce operations.

GAREX Algorithm evaluates and compares the outcomes of all six methods, selecting the one that offers the most efficient pricing.

Reduced Price Impact

Aggreg8 employs the GAREX Algorithm to minimize price impact by intelligently splitting trades across multiple DEXs and liquidity pools. This algorithm continuously monitors various liquidity sources to find the most efficient routes for each swap, ensuring that large trades do not disproportionately affect the market price of an asset.

By distributing the sell amount across multiple DEXs, GAREX Algorithm ensures that each DEX handles only a small portion of the total trade, thereby reducing the overall price impact. For instance, rather than executing a large sell order on a single DEX, which would significantly drive down the asset’s price, GAREX Algorithm divides the order into smaller parts and spreads these across several DEXs. This method maintains more stable prices and minimizes the effect on the market.

Reduced Slippage

Aggreg8 utilizes the GAREX Algorithm to minimize slippage by optimizing trade paths and exploring additional routing options. This comprehensive approach enhances trading efficiency and ensures optimal outcomes for users.