Fibrous: Revolutionizing DeFi with StarkNet’s DEX Aggregator

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8 Jan 2024
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I researched FIBROUS for you, which is one of the AMMs that attracts attention with its features, quickly converts data from other defi protocols, and is the most efficient for the user.
In the ever-evolving realm of Decentralized Finance (DeFi), Fibrous emerges as a trailblazing DEX Aggregator, taking a laser-focused approach to offer unmatched swap rates on the Starknet Validity Rollup. Unlike traditional Automated Market Makers (AMMs), Fibrous stands out by navigating the diverse Starknet landscape, seeking optimal routing paths across myriad AMMs. This commitment to excellence is driven by a vision to elevate and redefine the standards of the Starknet ecosystem.
The Need for a DEX Aggregator
While DeFi holds great promise, it has often been plagued by the fragmented operations of individual AMMs. These siloed environments, despite their significant liquidity, often result in suboptimal user experiences due to slippage and pronounced price impacts, especially during large-volume swaps. Recognizing these challenges, Fibrous was conceived as a unified platform designed to bridge these disparate AMMs, offering users an optimized swapping experience.
Importance of an Aggregator in DeFi
Aggregators like Fibrous play a crucial role in DeFi by consolidating vast liquidity resources across blockchains. Their mission is to facilitate the exchange of funds, ensuring users secure the most favorable prices. However, this is a complex task, as DeFi is rich in nuances. Aggregators serve as guides, navigating users through the complexities of DeFi to achieve optimal results with minimal friction.
Advantages for Users
Fibrous offers a suite of advantages that set it apart from the competition:

  1. Price Optimization: As an aggregator, Fibrous scans multiple exchanges to find the best prices, ensuring users get the most favorable rates.
  2. Gas Fee Savings: Fibrous often results in lower gas fees compared to other platforms.

Connecting Your Wallet to Fibrous
Fibrous prioritizes accessibility, requiring no additional applications or tools. Users can integrate their wallets seamlessly with Fibrous for a hassle-free experience.
Optimized Token Swapping with Fibrous
Fibrous allows users to swap tokens with various settings to find the best trade options:

  1. Start by selecting “Swap.”
  2. Configure global settings:
  • Slippage Tolerance: This parameter accounts for potential price differences during trade execution. Fibrous offers an “Auto” setting at 1.0%, but users can adjust it according to their risk tolerance.
  • Liquidity Sources: Fibrous automatically selects the best sources on the network. Users can customize their liquidity sources to their preference.

Understanding Price Impact, Slippage, and Fees

  1. Understanding Price Impact: Price impact reflects how a specific trade affects the market value of an asset pair, closely tied to pool liquidity. Low liquidity can lead to significant price impact and potential losses.
  2. Distinguishing Between Price Impact and Price Slippage: While similar, price slippage results from broader market actions, while price impact is directly linked to an individual transaction.

Strategies to Reduce Negative Price Impact
Fibrous employs a pathfinder algorithm to distribute trading volume across various liquidity sources, minimizing negative price impact. For tokens with a single source of liquidity, users can consider trading smaller volumes or waiting for increased market liquidity.
Managing Slippage on Fibrous
Fibrous offers “Slippage Tolerance” settings, allowing users to define an acceptable slippage percentage for their exchange. The platform often operates on “auto-slippage” to adjust tolerance based on the pair’s volatility.
Gas and Transaction Fees
Like EVM chains, Starknet’s CairoVM relies on gas fees for transaction processing. Ether (ETH) is the gas token for Starknet. Users should ensure they have sufficient ETH for their transactions on Fibrous. The platform charges commission fees of 0.02% for single-route transactions and 0.15% for multi-route transactions.
Fibrous’s Batch Swap Feature
Fibrous’s Batch Swap feature allows users to input multiple tokens simultaneously and receive an aggregated output, optimizing pricing for multiple assets. Thanks to Starknet’s Native Account Abstraction, it’s possible to manage multiple assets in a single transaction.
Supported Assets
Fibrous supports various assets, including ETH, DAI, USDC, USDT, WBTC, rETH, wstETH, and LORDS. The selection of assets may expand as liquidity sources and tokens grow on the network.
In conclusion, Fibrous serves as a beacon in the DeFi landscape, offering users a seamless and optimized swapping experience on Starknet. With its focus on price optimization, reduced gas fees, and innovative features, Fibrous is set to redefine how DeFi enthusiasts navigate the evolving world of decentralized finance.
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