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Project Overview
by starburst
April 18, 2024

No more fragmentation! Piteas to solve Pulsechain liquidity issues

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When it comes to trading, access to liquidity is the most important thing, but the fragmented nature of decentralized exchanges (DEXs) often poses significant challenges for traders, leading to suboptimal experiences marked by slippage and price volatility. Enter Piteas, a groundbreaking DEX aggregator armed with advanced routing mechanisms, poised to usher in a new era of seamless trading on Pulsechain.

What problem does Piteas solve?

On Pulsechain, a common problem is the fragmentation of liquidity across various decentralized exchanges (DEXs), leading to suboptimal trading experiences for users. There are numerous DEXs, and liquidity is spread across all of them, which makes it challenging for users to find the best swap rates and optimal trading routes. Pulsechain TVL is at $449.83 million, and PulseX alone has $316.35 million, while all the rest is locked on between protocols like Liquid Loans, Phux, Powercity, Phame, Phux, 9inch, 9mm, Daytona Finance, and many others. 

Many exotic liquidity pools are on all these smaller exchanges, and users have difficulty finding them or executing larger orders. Piteas addresses this issue by serving as a DEX aggregator, consolidating liquidity from multiple DEXs into a single platform. The user maintains the self-custody of her funds the entire time and exchanges assets anonymously.

The main engine of the platform is their Pathfinder, which is an innovative routing algorithm that finds the optimal swap route for each trade, ensuring users receive the maximum return. 

When a user submits a trade request, the Pathfinder algorithm navigates through various liquidity pools across all integrated DEXs to minimize slippage and maximize returns for traders. By leveraging the pathfinder, Piteas optimizes liquidity utilization and enhances the trading experience for users on Pulsechain. Users don’t need to look for the deepest pool to execute their trades anymore. Piteas swaps any token for any other token at the lowest possible cost. It protects the users against flashbot and sandwich attacks. The primary goal of a DEX aggregator is to provide users with superior swap rates, surpassing what individual DEXs can offer, and accomplish this efficiently. Piteas protects users from price impacts and reduces the likelihood of failed transactions. Pathfinder will simply take tokens from different pools on different exchanges, find the cheapest option, and present it to you.

Here’s how Piteas solves this problem and how it works:

  • Users submit trade requests for specific token pairs on the Piteas platform.
  • Piteas scans and analyzes liquidity across integrated DEX pools.
  • Piteas uses an advanced routing algorithm to determine the best swap route for each trade, ensuring the best price, lowest slippage, and highest returns.
  • Trades are executed across multiple DEX pools based on the determined optimal route.
  • Piteas informs users about the outcome of completed swap transactions, providing the necessary confirmation.
  • There are currently 7 protocols integrated into Piteas:

The active protocols are:

  1. PulseX  – V1 and V2 Pools
  2.  – Stable and Weighted Pools
  3. 9inch  – Uniswap v2 Pools 9mm
  4. Pancakeswap V2 & V3 Pools
  5. Velocimeter  vAMM and sAMM Pools
  6. Eazy Swap  – AMM Pools

Piteas charges a fee on the savings the user makes on the trades. If there are no savings, then the platform charges no fee. Another source of revenue is provided by the so-called “positive slippage.” It’s the profit generated from the change in liquidity on the network until the swap transaction is confirmed, which positively affects the output amount.

PTS Token

Moreover, the Piteas team created the PTS token with a fixed supply of 100 million to provide governance and utility features that will be further developed from the revenue funds. The supply is designed to be deflationary by making it constantly decrease based on the protocol’s revenue. PTS will find utility in gasless trades, swap fee reduction based on the PTS staked, single-sided staking for passive income generation, buybacks, liquidity provision, and others.

The team ran a sacrifice phase, which is now over, and the entire allocation has been distributed.

The future of Piteas

Looking ahead, Piteas is committed to continuous improvement, with upgrades slated for summer release. These upgrades include a degen-trade mode, an analytics-rich dashboard, pathfinder enhancements, and deep-search-level features embedded in dApps and APIs. With over 900,000 swaps executed through its smart contract and ongoing developments like the Pday – Pulsechain Openbook Protocol, Piteas is poised to reshape the Pulsechain trading landscape, one transaction at a time.

There have already been more than 900,000 swaps executed through the Piteas smart contract, showing its fast adoption. Piteas is also working on another Pulsechain project called Pday, which will use AI. Pday is a high-performance orderbook protocol implementing AI in DCA strategy, OTC, and limit order models.

Nothing in this article or website is financial or taxation advice. For advice on these matters, please contact a registered professional adviser.

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