In the latest release of Edge (3.18.0), we’ve added support for THORChain Streaming Swaps, enabling users to drastically reduce fees when trading. THORChain Streaming Swaps offer a way for users to receive a better rate by splitting a large transaction into smaller “sub-swaps” over a period of time. This approach is similar to the traditional method of Time-Weighted Average Price (TWAP) trades.
Edge will query for Streaming Swaps any time a user attempts to exchange over $5000 of value. Rather than executing a trade immediately when a user places their order, streaming swaps allow trades to be incrementally executed over a specified timeframe. THORChain is able to leverage the chain’s liquidity to give access to a large pool without significantly impacting liquidity with one single transaction. By making smaller trades over time market prices are able to be kept more stable, pools are re-balanced over time while a swap is in-progress rather than all at once after a trade is completed. These actions minimize slippage and provide consistent rates to the user.
Example: A trade of $100,000 in one instance can impact the value of the assets (depending on market depth). Streaming swaps reduce the impact of the single large trade over time which keeps the price of the asset stable. The $100,000 trade can be broken up into 10 sub-swaps of $10,000 each, executed 30 seconds apart. Between each sub-swap, liquidity pool prices can be re-balanced, minimizing slippage.
When a user swaps using THORChain Streaming Swaps, they may receive a partial refund if their exchange cannot be fulfilled within the minimum price limit or time constraint. Edge has set the minimum price limit to 0.5%-3% (depending on the asset) of the swap amount and the time constraint is set to roughly 45 minutes. Note that users will not lose money, but simply be refunded the portion of the exchange that could not execute.
If THORChain Streaming Swaps are selected, users will see a warning card and see “Powered by THORChain” below the quote. The warning card informs users that they are using THORChain Streaming Swaps because there is a possibility of an exchange failure. While most exchanges will be completed within 45 minutes, the completion of the exchange can sometimes be delayed for up to one hour as a security measure.
By default, Edge searches among all available exchange providers we’ve integrated in order to find users the best rate on their trades. For users who would like to customize this experience, exchanges can be enabled and disabled in the Settings scene. Please review “How do I make an exchange?” for more details.
In an upcoming release of Edge we’ll be expanding our support of THORChain even further, adding additional features that this innovative protocol is creating for the ecosystem. To stay in the loop on this upcoming integration be sure to sign up for our newsletter below.
If you have any questions about this please email our support team at firstname.lastname@example.org.