DeFi Lumenswap platform, built on the Stellar blockchain, will soon introduce a smart order routing system. This should significantly increase the profitability of swaps and give a new impetus to both the platform and the Stellar network as a whole.
DeFi platform on Stellar impresses with new update
Stellar refers to the native DEX (decentralized exchange) Lumenswap. Lumenswap (LSP) is the first fully decentralized AMM trading platform on the altcoin blockchain. The LSP’s own DEX token is used to control the platform, for example with a DAO.
In an official tweet, DEX announced the launch of a new protocol called Smart Order Routing, or SOR for short. This should further increase the profitability of the crypto exchange. As a rule, the protocols in Stellar Lumens rely on Horizon API. Its task is to find the best prices for token swaps and profitable mining, but it isn’t entirely efficient in this respect. Automated market makers on Stellar (XLM) should achieve much better results with this new protocol.
To achieve this goal, the protocol analyzes the liquidity statistics of all pools on Lumenswap (LSP), trying to find the most profitable exchange pairs. It then reroutes this order to several pools, which may contain other swap pairs. What this is can be read in the swap details. A simple click on the rainbow SOR button is enough.
For a while, the rate of XLM reacted positively to this news, but soon the price of XLM coin dropped due to the overall bad mood in the market. At the time of writing, the value of one coin is $0.11.