Impact of Open Ocean Finance on Crypto Market
OpenOcean finance aggregates major exchanges (DEXes and CEXes), hence, beneficial to DeFi and CeFi users. Now, let’s take a sneak peak on decentralized financing and centralized financing.
What is Decentralized Financing?
In its simplest form, decentralized finance is a system by which financial products become available on a public decentralized blockchain network, making them open to anyone to use, rather than going through middlemen like banks or brokerages. Unlike a bank or brokerage account, a government-issued ID, Social Security number, or proof of address are not necessary to use DeFi.
More specifically, DeFi refers to a system by which software written on blockchains makes it possible for buyers, sellers, lenders, and borrowers to interact peer to peer or with a strictly software-based middleman rather than a company or institution facilitating a transaction.
The use of technology in financial services is not new. Most transactions at banks or other financial services companies are accomplished with the help of technology nowadays. However, the role of technology is restricted to being a facilitator of such transactions.
What is Centralized Financing?
A centralized market is a financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
Open Ocean Finance
OpenOcean is the first full aggregation platform for crypto trading, allowing for cross-chain swaps and sourcing liquidity from DeFi and CeFi. Their innovative routing system finds the right pricing from DEXes and CEXes, splits the routes, and provides traders with the best prices, reduced slippage, and quick settlement.
Open Ocean Revolutionizing the Crypto Market
Users with big orders will automatically optimize the optimum route between markets in order to execute transactions at the best price, both via DEXes and CEXes, as Open Ocean continues to aggregate value adding exchanges.
Accessing exchanges with the greatest prices and deep liquidity is critical for getting the best trade. OpenOcean assists users by checking many DEXes and CEXes for prices and liquidity, then splitting the order into multiple routes to find the optimal trade.
Many DEXes, such as Uniswap and PancakeSwap, have sprung up as a result of DeFi. Each DEX has its own pool of liquidity and liquidity that cannot be accessed at the same time. The issue is that each pool has its own set of prices, and there isn’t always enough liquidity to ensure low slippage, especially when users trade in high volumes. To optimize the overall profit on your trade, the OpenOcean protocol handles this by sourcing, prioritizing/optimizing, and separating liquidity routes across several DEXes.
Open Ocean Finance will create a full aggregator for crypto trading that will improve capital efficiency and act as a bridge between the currently fragmented DeFi and CeFi markets. Everyone, whether a tiny individual investor or a huge institution, should be able to trade at the best prices and implement their own investing strategies across various crypto asset classes.
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