ParaSwap to Integrate Chainlink Keepers to Bring Limit Order Functionality to Its Decentralized Exchange or DEX Aggregator

ParaSwap announced that it will be integrating Chainlink Keepers in order to bring limit order functionality to its decentralized exchange or DEX aggregator.

ParaSwap confirmed on August 2, 2021 in a blog post that it will integrate Chainlink Keepers on Ethereum (ETH) so it can offer limit order functionality to their DEX aggregator protocol.

Chainlink Keepers use “decentralized” and “provably” reliable off-chain computation “to monitor user-defined conditions and then call on-chain functions once conditions are satisfied,” the announcement explained while adding that ParaSwap will be leveraging Chainlink Keepers “to trigger the execution of users’ limit orders when asset prices cross predefined price points.”

This should empower traders “to better manage their portfolios and hedge against volatility without manual interventions, ultimately helping them sleep better at night,” the update noted.

As explained in the announcement, ParaSwap is a DEX aggregator that “routes users’ trades through one or multiple different DEXes to get them the best price with the least amount of slippage.”

At present, ParaSwap is compatible with “most of the major DEX’s, including Uniswap, SushiSwap, Bancor, Kyber Network, Curve, 0x, and more.” ParaSwap reportedly has the ability “to split a single transaction into multiple orders across various DEX’s” and it may also “route orders through multiple assets if determined to provide a user the most liquidity.”

To enhance the utility of ParaSwap, the developers wanted “to bring limit order functionality to our DEX aggregator.” This will allow users “to set trades that execute only once certain price points are hit, such as selling 10 ETH only if ETH drops below $2000 USD or buying 10 ETH only if ETH goes above $2200.”

The announcement further noted that integrating limit order functionality on DEXes has been quite challenging because it needs off-chain monitoring of conditions, which have to be “relayed and verified on-chain in a timely manner once conditions are met.”

Such infrastructure is vital since on-chain monitoring is costly, and untimely trades “lead to slippage and missed opportunities, and lack of on-chain verification introduces new trust assumptions that may not be preferable to users.”

Chainlink Keepers offers a “decentralized solution that is cost-effective, reliable, and upholds the same security guarantees of the blockchain,” the release noted while adding that Chainlink Keepers will be used “to monitor users’ limit orders off-chain against global asset prices and execute them on-chain in a verifiable way once certain price points are hit.”

As stated in the update:

Some of the “unique features” of Chainlink Keepers that allow them to achieve this include:

  • High Uptime — Chainlink Keepers are “run by the same professional DevOps teams that have an established on-chain performance history of providing high reliability to Chainlink Price Feeds during extreme network congestion and market volatility.”
  • Low Costs — Chainlink Keepers have several gas-optimizing features that “lower the costs of automating maintenance tasks for users, including a rotating node selection process to prevent gas price auction wars and stabilize costs.”
  • Decentralized Execution — Chainlink leverages a decentralized and transparent pool of Keepers to “provide strong guarantees around secure contract automation, saving teams time and mitigating the risks around manual interventions or centralized servers.”
  • Expandable Computation — Chainlink Keepers “perform off-chain computations and generate calldata verifiable by smart contracts, allowing developers to build advanced, trust-minimized dApps at lower costs.”

Mounir Benchemled, Founder of ParaSwap.

“Integrating Chainlink Keepers will enhance the trading experience on ParaSawp by empowering users to attach custom conditions to their trades. Given the historical reliability of Chainlink services and their optimizations around decentralization and low fees, our users will have a cost-efficient and highly reliable way to automate trades while still anchoring the security of limit order functions to the underlying blockchain.”

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