We are close to getting live with Mycota, our DeFi aggregator, on Ethereum. A DeFi or DEX aggregator unlocks all the different liquidity pools on Ethereum (f.e. Uniswap, SushiSwap and others) and provides traders the capability to route their trades in the most optimal way. Roughly 35% of global DeFi trading volumes are flowing through DEX aggregators of which 1inch and Matcha are the biggest players. Mycota is going to compete in this market and aims to (1) provide a much more user friendly UI to attract novice DeFi traders and (2) provide a more optimal routing.

The last few weeks we have been testing our routing and optimization algorithm against both CoinGecko pricing and our main competitors. And guess what? Mycota’s current A.I.-based algorithm is already better or on-par with the competition. The team is already working on V2 of our routing algorithm as well to make even better optimized routes in the future.

100K+ data points for some of the biggest trading pairs shows we are simply outcompeting peers on price! (And mostly on-par for bigger trades). On the vertical axis you can see the CoinGecko pricing (without trading fees and slippage). Then for all 100K+ trades the bubbles represent the Mycota, 1inch and Matcha trades compared against the Coingecko prices. The Mycota, 1inch and Matcha trades include trading fees, slippage and gas fees.

What can we conclude from this?
– Already in V1 our portal will give users on average better pricing than 1inch and Matcha. Also the pricing is more stable since the outliers are less.
– The average Mycota pricing (including trading fees, slippage and gas fees) is equal to CoinGecko pricing (excluding fees and slippage). This means the CEX-DEX migration seems to have already reached a tipping point where DeFi pricing can already outcompete the pricing on the centralized exchanges like Binance, Kraken, Kucoin and others. By the way, on some trading pairs a decentralized exchange like Uniswap (one of the liquidity pools that Mycota is using) already has more trading volume than the biggest CEX Binance.

The routing and optimization algorithm was developed together with a team from the Data Sciences and AI faculty of the University of Maastricht.

We have been bootstrapping our way towards a competitive first product and are finally ready for initial investments. Also to fund the next stages from our multi-year strategy in our whitepaper.
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