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Fluid x 1inch: Enhanced Liquidity Layer Brings Effortless Trade Optimization

source-logo  blockchainreporter.net 06 November 2024 09:48, UTC

The Fluid team has announced the collaboration with 1inch, a widely known DEX aggregator. This is great news for those interested in decentralized finance (DeFi). With this alliance, DeFi users stand to benefit from the trading boost from Fluid’s Liquidity Layer on the 1inch platform by improving trade execution and reducing slippage.

Good news!

The Fluid DEX is now integrated with @1inch aggregators!

Trades taken on 1inch can now be routed through the Liquidity Layer for optimal execution and minimal slippage 🌊 pic.twitter.com/xjeSdndcTM

— Fluid (@0xfluid) November 5, 2024

The Power of the Fluid’s Liquidity Layer

Fluid has deployed its Liquidity Layer, which aims to make it easier to execute trades and find the best routes for swapping digital assets. Using this layer, customers can make transactions in 1inch, which can use the liquidity pools, which provide a high execution speed. This integration is meant to reduce slippage, the difference between a trade’s expected price and the price achieved when a trade is executed.

The liquidity layer can be seen as an intermediary that facilitates trades and guarantees execution. In this system, 1inch and Fluid consumers will likely benefit from increased transaction speeds during peak trading.

What This Means for Traders

Slippage is a major problem that DeFi traders face, especially when using large quantities of tokens or when the market is unpredictable. Liquidity Layer, owned by Fluid, incorporates 1 inch to enhance trade paths. This means that the users can get the right price and make the trades much faster and with less fluctuation, which is common in the markets. In other words, trades executed via 1inch can now access the platform’s liquidity and align everything to reduce losses from slippage.

Strengthening the DeFi Ecosystem

When platforms such as 1inch and Fluid combine, the DeFi ecosystem becomes more integrated and easily accessible. Such collaborations also point to expanding DeFi adoption beyond high-frequency investors and making the product user-friendly for ‘everyday’ people concerned about price fluctuations and potential slippage.

As for Fluid, it positions itself as an “ever-evolving DeFi protocol,” which can become the basis for further financial systems. Partnering with 1inch makes a quantum leap in proving the utility of DeFi technology in the real world. At the same time, 1inch remains one of the prominent DEX aggregators, constantly adding new features to provide its users with the best quotes using data from various sources in terms of liquidity.

Future Implications

Such integration could serve as a precedent for future integration within the DeFi ecosystem. As this industry grows, we may witness various new projects focused on the user experience. Fluid and 1inch have aligned with the same vision of contributing to the growth of DeFi, and their partnership demonstrates how some of the most relevant issues, like high slippage and liquidity fragmentation, can be solved with the help of cooperation.

blockchainreporter.net