Pangolin integrates dTWAP powered by Orbs!

Preceded only by SpiritSwap, and the first to integrate on the Avalanche blockchain, Pangolin DEX has fully integrated with Orbs’ dTWAP. dTWAP is a fully decentralized, permissionless, and composable DeFi protocol developed by the Orbs team and powered by the Orbs network. Traders utilizing the DEX will now have access to the sophisticated order type, dTWAP.

This achievement reflects the close collaboration between Orbs and Pangolin, smart contract audits (1,2), and testing from both teams. This is a growing reflection of the new DEX standard that Orbs is creating through dTWAP.

Orbs is a decentralized protocol executed by a public network of permissionless validators using PoS, staked with over a hundred million dollars. Orbs pioneers the concept of L3 infrastructure, by utilizing Orbs’ decentralized network to enhance the capabilities of existing EVM smart contracts, opening up a whole new spectrum of possibilities for Web 3.0, DeFi, NFTs and GameFi.

Minimize Price Impact, DCA, & more

Pangolin has 35 million dollars worth of liquidity at the time of writing and, in the past 7 days, has facilitated a trading volume of over 16 million dollars. Before this integration, Pangolin only supported market and limit swaps. We’re excited to have been able to provide another order type that will give an edge to Pangolin traders looking to minimize the price impact of their swaps.

One of the algorithmic trading strategies used in CeFI is TWAP. It's designed to mitigate the impact of large orders on the market by breaking them down into smaller pieces over time. This approach minimizes price impact by executing smaller orders and allowing arbitrageurs a short window to close any price discrepancies on the affected pools in the interval between trades. TWAP can also be used to dollar-cost-average into various assets over a specified period of time. With dTWAP, this strategy is now available for DeFi traders as well.

Interacting with the dTWAP UI

Pangolin traders can find dTWAP in a familiar place, located next to ‘Market’ and ‘Limit’ orders. Traders can switch to the dTWAP order type, and when doing so users are presented with a fully customizable informative UI with plenty of tooltips to help get them started with their first dTWAP order.

dTWAP has 3 parameters that must be specified before execution:

• Duration: the total time during which the total amount of individual trades making up the full dTWAP order may be executed.
• Trade Size: the user can set the size of each individual trade. The UI then automatically calculates the total number of trades needed to complete the full order, the est and the trading interval.
• Trade Interval: sets the amount of time between each individual trade. The user can elect to edit this, automatically resulting in corresponding trade size and number changes.

The parameters enable rich customization of each order by taking into account factors such as market conditions, current gas fees, etc. In addition, the UI enables both dTWAP-market and dTWAP-limit orders. Once these parameters are set, the user can approve the specific source token and place the order followed by a review of their specified configuration and terms of service agreement.

Creating a standard for DEXs

With two live integrations and more in the pipeline, we continue to prove the importance of dTWAP to DEXs and Orbs as a reliable layer-3 partner for sophisticated decentralized applications. dTWAP serves as a vital tool in a marketplace where liquidity tends to be fragmented. In addition, it provides another source of liquidity for DEXs and a way to attract large-volume traders from the competition that has yet to integrate with this new technology.

Those of you who have been paying attention have likely already noticed that we’ve added both Spooky and QuickSwap to the dTWAP webpage and have ongoing integrations with both. Both DEXs are leading in their respective chains and interest is only ramping up behind the scenes.

As an increasing number of protocols recognize the benefits of offering this robust order type on their exchanges, we expect to integrate with more industry-leading platforms.