Aggregator

Aggregator

Tide Perp DEX aggregator solves the issue of liquidity underutilization and lack of cross-chain liquidity. By using a combination of liquidity routing/aggregation, position containers, and cross-chain liquidity, the aggregator can route trades to the most suitable liquidity route to minimize trading costs.

The Leveraged Trading Aggregator is a sub-protocol of the Tide protocol suite that aims to address the challenges faced by leveraged trading protocols. With the growing number of leveraged trading protocols available, liquidity is fragmented, leading to suboptimal utilization of funds. Additionally, accessing cross-chain liquidity is challenging, and pricing mechanisms and margin parameters vary across different protocols, making it difficult for traders to find the best pricing and trading experiences.

To tackle these issues, the Tide Aggregator implements various mechanisms, including multi-protocol liquidity routing, collateralized position container, and leverage amplification. The liquidity routing mechanism dynamically routes traders' orders to the underlying protocol that offers the best liquidity depth, taking into account the composite cost factors such as spread, slippage, price impact, and position fees.

For example:

To offer cross-chain aggregation, Tide uses a Universal Liquidity mechanism.

When a trader uses Chain A to open a position, Tide automatically opens the actual position on an underlying protocol of Chain B.

This means that users do not need to directly access Chain B to use its liquidity.

By utilizing this mechanism, Tide aims to enhance the user experience and increase the accessibility and efficiency of cross-chain trading.

The collateralized position container is a smart contract that holds traders' positions and acts as a buffer between traders and underlying protocols. This isolates risks among traders and ensures safety. The leverage amplification mechanism allows traders to access leverage beyond what is offered by the underlying protocol. The Tide Aggregator provides additional margin from its liquidity pool, which amplifies the trader's initial margin and enables them to access higher leverage without increasing maintenance margin requirements.

In summary, the Tide Leveraged Trading Aggregator seeks to improve the leveraged trading experience by addressing the challenges faced by current leveraged trading protocols. By implementing mechanisms such as multi-protocol liquidity routing, collateralized position container, and leverage amplification, the Tide Aggregator aims to increase the liquidity, accessibility, and efficiency of leveraged trading, while minimizing the composite cost for traders.