How does the Marsbase calculator compare price impact and slippage on CEX and DEX
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In this article:
In reality, every transaction carried out with any asset changes its value to some extent. That is why the total amount of the transaction at the opening and execution time can be very different. Two factors come into play and negatively affect the transaction and the asset as a whole.
These are price impact and slippage.
Slippage is the difference between the value of a trade at the time of its creation and its final execution. This happens on CEX — centralized exchanges due to the difference in prices for buying and selling and the amount of available liquidity at certain prices in the market.
The price impact happens due to the limited liquidity available for the transaction. The exhaustion of available liquidity significantly reduces the price of an asset and results in the loss of money on any transaction associated with it.
This is especially true for large transactions of hundreds of thousands or millions of dollars. There are a lot of such transactions in the crypto market, and they take place every minute.
But! In DeFi liquidity problems have more power. Sometimes a $50k or $100k dollar trade is enough to make the rate fluctuate by 10–15%.
If you have ever lost money on large trades in liquid assets or small trades in illiquid assets, then you will probably be interested to know how to save money on this and how much potential losses you can avoid without affecting the market price.
You now have the ability to compare real-time trading conditions on Marsbase dOTC with those on top CEX and DEX exchanges (Huobi, Binance, Uniswap etc.)
We present to you the Marsbase Smart Calculator. Use it to understand how much money is lost on similar transactions on the CEX/ DEX markets and how much you can save using the Marsbase dOTC Desk.
Read more about how to make money on the Masbase dOTC crypto desk here.
How to get started with the calculator?
- To get started, select the trading pair that interests you. Let’s say it’s MATIC/USDT.
- Specify the number of tokens you plan to exchange.
- Click “Calculate”.
- The calculator will calculate potential losses on the CEX and DEX, taking into account slippage, the impact on the price.
- After that, try to set the discount (Discount) on the screen below.
- Compare how even a significant discount on Marsbase will not exceed the potential losses on CEX and DEX.
- Feel free to switch to the Marsbase platform and trade without huge losses.
FAQ
What is discount and premium?
As a tool to influence demand, we have come up with two options that can be used as desired.
A discount is simply a reduced price you set on an asset you want to buy or sell.
A premium is an increased price of an asset.
Learn more on trading modes and parameters on Marsbase here.
Where do discount recommendations come from?
We take the lowest loss from CEX or DEX and suggest you choose your value based on that. If the loss is 10%, then the calculator will offer a discount from 3% to 9%. All these parameters can be directly manually selected on the OTC Desk.
How does the calculator work with CEX?
To calculate the real cost of transactions on CEX exchanges, our calculator collects all order books from all the most popular exchanges via Coinmarketcap (Binance, Kraken, Coinbase, Gateio, FTX, kucoin, Huobi, Bybit). Tokens from the TOP 150 CMC list are available for calculation. They match the tokens used on the platform, so you can easily check any token pair you are interested in.
Next, the number of orders that can be executed for the volume specified by the user is calculated. We have not forgotten about the exchange tax on transactions, which will also add to the loss item.
During the first operation, the calculator itself calculates the total value of the asset. This is the weighted average price of the specified volume, similar to how you would collect the required volume on several CEXs.
Then the calculated rate is multiplied by the volume and compared with the first value (the difference between the initially assumed and the final amount of the transaction).
How does the calculator work with DEX?
To calculate data from DEX exchanges, we use the most up-to-date aggregator tool 1inch. It already has enough tools to calculate the slippage and gas fee of each transaction.
Looking at the values obtained, it certainly becomes uncomfortable with how much the transaction will go nowhere. That’s what Marsbase is for. We provide the opportunity to exchange this or that asset without changing the price on the market and without senseless loss of money from your wallet.
We will have to pay only a small commission (the smallest on the OTC market) and for the fastest execution of the transaction, add an additional percentage of discount at our discretion (in any case, this will be more profitable than CEX or DEX platforms).
What pairs can be counted?
To date, pairs with stable coins and ether are available in the calculator.
If you choose an ERC-20 token (for example, MATIC) on the one hand, then you can only select Stable coins + ETH in the list for calculation.
If you select an ERC-20 token (for example, USDC) on one side, then you can select all tokens in the list for calculation, except for the specified stable (USDC).
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