Shrimpy improves access to cryptocurrency liquidity by launching smart order routing | By Capital | Capital | June 2021
The battle for the best crypto trading platform has been brutal recently. Fierce competition makes it necessary to stand out in the vibrant crypto market.
Due to fierce competition, several leading cryptocurrency exchanges have adopted a number of innovative features. The purpose is to ensure a competitive market position. One of these notable features is the intelligent order routing terminal.This article will further in-depth study by Dried shrimp, An automated portfolio management platform for crypto investors, providing a variety of trading tools and investment assistance options.
What is a smart order routing terminal?
Abbreviated as SOR terminal, one Smart order routing terminal It is a dedicated automatic order processor. It is used by trading robots and algorithms to process orders by taking advantage of the best opportunities in the entire trading venue.
The SOR terminal follows the defined rules, algorithms and configurations when placing orders.They appeared to solve the daunting problem of liquidity dispersion, which is due to Multilateral trading facility (MTF) and trading venues. This increase is due to the same stock being traded in several different venues. In practice, SOR may flourish due to fragmented liquidity.
Shrimpy’s SOR system
How does this work
SOR first evaluates all potential trading opportunities through all available market pairs on its 16 supported exchanges. The terminal uses algorithms to find the best liquidity route for executing transactions. Routing is based on any changes in the market, and controls are set to take into account slippage, spreads, favorable trading patterns, trading restrictions, and execution time.
Shrimpy’s developer API enables developers to add support for the SOR process. This support does not have the complexity normally required for support services to run such complex functions. Each executed transaction is ultimately an accurate limit order, designed to maximize the outcome of the routing process.Such results may follow a path across multiple transactions Quote currency Before reaching the target asset.
The selling point of using the SOR process
Combining the new SOR terminal with an additional developer API system can bring multiple benefits to the Shrimpy trading platform. These benefits include;
At the same time enter various trading places
The intelligent order routing process makes full use of the advantages of decentralized liquidity by including numerous MTFs and trading venues. Therefore, it allows users to access multiple trading venues at the same time. Therefore, investors can open positions and execute transactions without suffering any loss, which usually occurs when the trading platform cannot find the right amount of liquidity.
Automatic best price results
One of the main selling points of the SOR terminal is that it automatically searches for the best price. You can compare all the prices of funds through different venues.
The fact that routing takes into account market changes and follows different paths leads to the selection of the best trading pair. Therefore, users of Shrimpy-supported exchanges can obtain the best trading value for their digital assets without having to manually log in to each exchange account to search.
Allows for additional trade control and verification
SOR means that the Shrimpy trading platform adheres to the best execution requirements. It does so by following the best transaction path with cost and performance considerations.
This creates some form of control over order processing and execution paths by avoiding poorly priced paths. This process also adds a form of transaction verification in the transaction process. Users can collect information about executed transactions by obtaining transaction status.
Provides a good framework for custom algorithms
The SOR process is usually used by trading robots and algorithms. The result is a highly automated dedicated order processing system.
The high degree of automation and the use of trading algorithms provide a good starting platform for the use of custom algorithms. Customization helps to customize the transaction process and results according to the needs of Shrimpy users. Customized algorithms allow for a high degree of specialization and customer-centric service within the system.
Provide customers with integrated services
Any API developer can immediately integrate any SOR endpoint on Shrimpy. The integration process has been simplified, and a set of integrated APIs have been created to connect all supported exchanges.
This integration allows users to directly connect with Shrimp on any supported exchange and easily execute orders, collect data and manage their accounts. This reduces the potential backlog of millions of orders that could slow down the exchange’s servers.
SOR, like any other excellent innovative trading function, is not without its shortcomings. The first potential challenge is the increase in latency. In order to achieve the best price scenario, the terminal increases the dormancy of the transaction, and the waiting situation is adequate. At the same time, the process of using various incomes also helps this. However, it is important to note that there is a huge net time gain during trading, because traders do not have to manually search for better prices.
As the competition for market penetration by crypto trading platforms intensifies, users will inevitably benefit from transcending the competition, as it will lead to the introduction of improved features and diverse tools. The smart order routing system is one such feature provided by the Shrimpy platform, and crypto users benefit the most from it.
Benefits include users’ access to a wider range of trading venues, the best prices for transactions, and more forms of transaction path control that provide more liquidity. However, due to the search for the best price and the purchase of multiple locations, the increase in delays in the transaction process has potential drawbacks.The added benefit seems to be a better trade-off of potential disadvantages, billing Dried shrimp As an increasingly competitive and powerful crypto trading portfolio management tool.