The idea in a nutshell is to integrate InfinitySwap with the Quantum Portal engine to create a smart routing aggregator that solves the problem of fragmented liquidity and slippage by fractionalizing transactions across multiple networks/DEXs.
One of the problems with having liquidity across multiple DEXs and networks is fragmented liquidity. This causes major slippage issues which deters buying.
While this is a problem, it also means that its a problem worth solving. The way I understand InfinitySwap is that it will be an aggregator that will route a transaction to wherever the best arbitrage opportunity lies. However, if a token such as FRM or FRMx has low liquidity across all of its pairs across multiple networks and DEXs, the arbitrage on the best priced pair becomes obsolete on any transaction sizable enough to push the slippage past the next best priced pair.
The way to solve this would be to aggregate fractionalized liquidity. For example, if someone wanted to buy 10k USD worth of FRM maybe 5k would come from Apeswap on BSC, 3k would come from Dfyn on Polygon, 2k would come from Uniswap on Ethereum or Trader Joe on Avalanche.
The problems that this would present that would need to be solved are as follows:
- If Ethereum was a network that we would include, the algorithm would need to be able to look at gas price predictions and factor that in when routing the price. In order for gas prices to make sense, Ethereum would likely only be used in situations of extreme arbitrage or very large buy orders.
- If multiple transactions were to be conducted, that would mean that peoples holdings from that tx would be fragmented across multiple chains. We would then need to automate the bridging of the fragmented holdings to the destination chain of the end user’s choice.
By integrating the Quantum Portal engine with InfinitySwap we can solve this problem.