The L-1 streaming swap feature on Lends is designed to optimize the swapping of assets by providing the best pricing and efficiency.
Here’s a detailed look at what it entails:
L-1 Streaming Swap Feature:
1. Price Optimization:
- The primary focus of L-1 streaming swaps is to ensure that users get the best possible price for their swaps.
- This is achieved by spreading the swap execution over a period, rather than executing it all at once.
2. Efficiency:
- By streaming the swap, the platform can take advantage of price fluctuations and liquidity over time, leading to more efficient trades.
3. Time-Weighted Average Price (TWAP):
- The concept is similar to a Time-Weighted Average Price (TWAP) trade, where the trade is executed in small increments over a set period.
- This helps in reducing the impact of large trades on the market price.
4. Execution Period:
- The swaps are executed over a specified period, which can help in mitigating the risks associated with sudden price movements.
5. User Control:
- While users cannot select faster time-optimized swaps, the price-optimized approach ensures that they benefit from the best available pricing.
Benefits of L1 Streaming Swaps:
- Reduced Market Impact: By spreading out the trade, the impact on the market price is minimized.
- Better Pricing: Users can achieve better pricing by taking advantage of price fluctuations over time.
- Risk Mitigation: The gradual execution helps in reducing the risk associated with large, sudden trades.
How to Use L-1 Streaming Swaps:
1. Initiate Swap: Start by selecting the assets you want to swap.
2. Set Parameters: Define the swap parameters, including the duration over which the swap will be executed.
3. Execute: The platform will handle the rest, executing the swap in increments to optimize pricing.
If you have any specific questions or need further details, feel free to ask