The Gospel of Giant Whales? What are the highlights of Curve's new cross-asset Swap transaction service?

Original title: DeFi New Game 丨 DEX Revolution, an article to understand the cross-asset Swap transaction service launched by Curve

Original Source: Babbitt-Free and Easy

In this article, we first show the effect of this new transaction service, then briefly explain its principle, and finally make some observations.

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Cross-asset Swap transaction is a new Curve transaction service with Synthetix as a bridge, Before explaining this function, we need to understand the following points:

1. Handle transactions with 7-digit to 8-digit dollars, basically no slippage;

2. Since Synthetix Due to the settlement period, this kind of transaction needs to wait for 6 minutes, and the price may change during the period;

3. You can trade any asset because It shares an asset pool with synth (sUSD/sETH/sBTC); this function is still in the beta testing stage;

4. The cost of this transaction is Very high (at a gas price of 50 gwei, the transaction fee can reach $80), so it is suitable for large transactions;

5. There are two parts to the transaction , so there will be two transactions;

How to perform cross-asset Swap transaction

A simple understanding of this cross-asset Swap After the characteristics of the transaction, let's get to the actual operation.

For example, I want To buy wBTC with DAI stablecoin, the transaction amount is 10 million USD, then it shows that the amount of wBTC that can be obtained is about 282.06 BTC.

and use aggregator 1inch , the same amount of USD 10 million in DAI, the amount of wBTC that can be exchanged is only about 276.14 wBTC, and the slippage is close to 1%.

Then if we use uniswap , then the same amount of USD 10 million in DAI can be exchanged for approximately 241.869 wBTC, with a slippage close to 14.8%.

In comparison, Curve The cross-asset trading services provided are indeed the benefits of large traders. So how exactly is this possible?

The principle of cross-asset Swap transaction

In short, in this process, DAI will be converted into sUSD first, Then exchange it to sBTC, and finally to wBTC, where Synthetix is used as a bridge (because of Synthetix’s mortgage synthetic asset model, the exchange of sUSD and sBTC has no slippage), and finally the exchange of sBTC and wBTC uses Curve's CFMM can achieve extremely low slippage.

The entire transaction The first part is to convert DAI to sBTC. After confirmation, the trader will receive an NFT representing the transaction, and then the transaction will immediately enter the 6-minute settlement period (note: it is best not to close the browser during this period).

Checkout in Synthetix After the period, you can complete the transaction by clicking the " Complete trade" button, after which the sBTC will be converted into wBTC.

After confirming the transaction, you can receive the wBTC to be exchanged.

Some simple ideas