LIQUIDITY POOLS UNVEILED: HOW MIRAKLE’S MULTI-ASSET POOL BENEFITS TRADERS

Mirakle
3 min readSep 14, 2023

Decentralized exchanges have traditionally relied on individual liquidity pools for each trading pair. Some of the popular projects run isolated pools for ETH/USDC, ETH/DAI, ETH/USDT, and so on. However, this fragmented approach has led to critical inefficiencies that ultimately hurt traders.

Mirakle is pioneering a new paradigm with its unified multi-asset pool architecture. By aggregating liquidity across all assets, Mirakle can optimize capital efficiency, minimize trading costs, and unlock flexible swaps. Traders stand to benefit enormously from this pooled liquidity model.

Problems With Fragmented Liquidity

To understand the advantages of Mirakle’s approach, it’s useful to first examine the drawbacks of isolated trading pairs:

Increased slippage — With thin, disjointed liquidity across pairs, large trades can move prices substantially due to limited depth. This slippage eats away at trader profits.

Higher fees — Fragmented liquidity leads to lower capital efficiency. Traders have to pay more in fees to subsidize inefficient pools.

Slow swaps — Swapping one asset for another often requires multiple hops across pools. More transactions mean more time and fees.

Arbitrage leakage — Price discrepancies across isolated pools allow savvy arbitrageurs to extract additional value rather than accruing to traders.

Divergent prices — Separate pools can lead to pricing inefficiencies as asset correlations diverge. Traders get worse rates.

These limitations become especially pronounced during periods of peak volatility. By siloing liquidity into hundreds of pairs, DEXs make traders bear the brunt through higher costs.

How Mirakle’s Pool Is Different:

Mirakle upends the status quo by aggregating all liquidity into a unified pool basket. Instead of maintaining disjointed pairs, Mirakle consolidates assets for maximum efficiency. This unlocks tangible benefits:

Seamless swaps — Any asset can be directly swapped for any other asset in one transaction. No more hopping between pairs.

Lower fees — With optimized capital usage, fees are reduced significantly compared to fragmented DEXs.

Tighter spreads — Combined liquidity results in tighter bid-ask spreads and less slippage for large trades.

Smoother pricing — Aggregate liquidity allows Mirakle to provide smoother, more consistent pricing between assets.

Improved utilization — Traders can tap into a deeper, unified pool of liquidity rather than sparse fragmented pairs.

Dynamic rebalancing — Mirakle’s pool automatically rebalances asset weights based on utilization patterns to maintain efficiency.

It can be said that the single pool allows Mirakle to maximize liquidity usage across the board. Traders benefit through direct swaps, reduced fees, and minimized slippage. Liquidity begets more liquidity in a virtuous cycle.

In conclusion

Mirakle’s unified pool architecture is a template for the future of decentralized trading. As trading activity grows exponentially, capital efficiency and deep liquidity will become prerequisites to deliver a high-quality trading experience.

By pioneering an aggregated pool, Mirakle has built a next-generation model for the coming influx of trading volume, asset classes, and blockchain activity. The efficiency of pooled liquidity will become even more pivotal going forward.

For traders, Mirakle unlocks a faster, cheaper, and more flexible trading experience. The aggregated pool allows users to seamlessly swap any asset for any other at the best possible rates. As DeFi trading continues to accelerate, protocols like Mirakle will set the standard by making liquidity more accessible than ever.

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