Turbos Finance, a decentralized exchange (DEX) on the Sui blockchain, has introduced a new feature that allows users to swap stablecoins across different networks without wrapping them. Smart routing is a feature that helps users who are new to Sui or who use other platforms to access the DEX more easily. It also enhances the liquidity of stablecoins on the DEX by finding the best rates and routes for swaps.
The New Feature Aims to Simplify DEX Accessibility
Stablecoins are compatible with each other, as they may be issued on different blockchains that have different consensus mechanisms and standards. For example, USDC is a popular stablecoin that is issued on multiple networks, such as Ethereum, Solana, Algorand, and Stellar. To access the USDC stablecoin on Sui, users have to convert their USDC into wrapped tokens on the home network.
Turbos Finance has developed a smart routing system on Sui that enables access to different USDC variant liquidity pools, as stated in a press release. “This innovation allows all USDC variants on Sui to leverage their origin networks,” the press release explained.
— Turbos Finance (@Turbos_finance) June 6, 2023
The smart routing feature works by automatically detecting the best available route for swapping stablecoins on Turbos Finance. For instance, if a user wants to swap USDC issued on Ethereum (USDC-e) for USDC issued on Solana (USDC-s), the smart router will find the most optimal liquidity pool that offers the best exchange rate and lowest slippage for the transaction.
The smart router will also take into account the gas fees and bridge fees involved in wrapping and unwrapping tokens across different networks. The user will only have to pay a single fee for the swap, instead of multiple fees for each step of the process.
The smart routing feature is expected to attract more users and liquidity providers to Turbos Finance, as it simplifies the user experience and reduces the costs of swapping stablecoins. It also enables more arbitrage opportunities for traders who want to exploit price differences between different stablecoin pools.
Sui is compatible with Ethereum and supports smart contracts and decentralized applications (DApps). Turbos Finance offers various features such as liquidity mining, yield farming, and governance tokens for its users.