Defispot routing: when aggregation fits

An aggregated quote and a direct DEX quote are comparable only when they use the same input asset and amount, source network, output asset and destination network. Include disclosed costs that are charged separately from the quoted output, without deducting a fee twice.

If a DEX supports that pair and gives a better expected net output, a direct route can be preferable. More integrated sources do not establish that an aggregated route is cheaper for every swap.

In its April 19, 2024 listing announcement, KuCoin described Defispot's API routing through DEXs, other aggregators, bridges and cross-chain protocols , covering more than 60 blockchains. That historical coverage figure does not establish a route for every token pair or network combination.

Cross-chain aggregation fits a task that requires a supported output asset on a different network. A same-chain DEX quote covers a different task if the starting asset is held on another network, because it excludes the transfer between networks. Match the destination network and asset representation to what is needed.

The project's November 23, 2021 introduction described native cross-chain swaps through THORChain. A native asset and a wrapped representation are different outputs; do not assume that every bridge or aggregator route delivers the native version.

Open full-size image

Defispot announced THORChain streaming swaps, which divide execution into smaller sub-swaps spread over time, with the aim of improving price execution. Streaming describes how the swap executes; aggregation describes the liquidity sources that routing can use.

Where a route supports streaming, it is relevant when the potential execution benefit justifies the additional duration. The announcement does not establish a guaranteed saving, fixed fee or completion deadline for a particular swap.

Defispot's 2021 THORChain explanation distinguished a finalized incoming transfer from the outgoing transfer on the destination chain. An input transaction or inbound confirmation therefore cannot, by itself, establish receipt of the requested output.

For cross-chain use, check the asset, network and amount actually received against the intended output. A quote describes expected output; a submitted action or finalized inbound leg establishes a different stage.

• Confirm that a live Defispot route exists for the exact assets and networks.
• If one DEX serves the same pair, compare equivalent output quotes and separately charged costs.
• For a cross-chain output, verify the destination network and whether the asset is native or wrapped.
• Consider streaming only where the selected route supports it and the execution period is acceptable.