Neptunus, Liquidity Aggregator on Stellar
Recently, Stellar added Liquidity Pool on protocol level with its Protocol 18 update. So, now there are two Liquidity sources for each trading pair. Orderbook and Liquidity Pool. This split can cause something unwanted. Arbitrageurs now have more arbitrage opportunities, Which can cause increased arbitrage volume that’s spamming the network.
For market takers, this fragmentation lessens the benefit of Liquidity Pool since a trade could only be executed on either Orderbook or Liquidity Pool(At least for now).
A Liquidity Aggregator would fix this by executing a trade on both liquidity sources. This would bring a better rate for market takers, essentially combining Liquidity Pool and Orderbook liquidity. This will also make the DEX market more efficient and lower the arbitrage activity.
Neptunus fixes this by executing the trade on both liquidity pool and orderbook with our unique algorithm.
In addition, we have additional new features to be added and that includes “path splitting based transaction”. Which we believe if combined with our initial interleave (combining orderbook and liquidity pool) algorithm can make some meaningful and efficient trades. So stay tuned for that.