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Calculate price impact losses & work with disc / premium
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Use the Marsbase Smart Calculator to understand how much money is lost on your transactions on the CEX/ DEX markets and how much you can save using the Marsbase dOTC Desk.
To calculate the real cost of transactions on CEX exchanges, our calculator collects all order books from all the most popular exchanges via Coinmarketcap (Binance, Kraken, Coinbase, Gateio, FTX, kucoin, Huobi, Bybit). Tokens from the TOP 150 CMC list are available for calculation. They match the tokens used on the platform, so you can easily check any token pair you are interested in.
Next, the number of orders that can be executed for the volume specified by the user is calculated. We have not forgotten about the exchange tax on transactions, which will also add to the loss item.
During the first operation, the calculator itself calculates the total value of the asset. This is the weighted average price of the specified volume, similar to how you would collect the required volume on several CEXs.
Then the calculated rate is multiplied by the volume and compared with the first value (the difference between the initially assumed and the final amount of the transaction).
To calculate data from DEX exchanges, we use the most up-to-date aggregator tool 1inch. It already has enough tools to calculate the slippage and gas fee of each transaction. Looking at the values obtained, it certainly becomes uncomfortable with how much the transaction will go nowhere. That’s what Marsbase is for. We provide the opportunity to exchange this or that asset without changing the price on the market and without senseless loss of money from your wallet.
We will have to pay only a small commission (the smallest on the OTC market) and for the fastest execution of the transaction, add an additional percentage of discount at our discretion (in any case, this will be more profitable than CEX or DEX platforms).
Every transaction carried out with any asset changes its value to some extent. That is why the total of the transaction at the creation and execution time can be very different. There are two factors that negatively affect the transaction price, as well as the asset as a whole.
These are price impact and slippage.
Slippage is the difference between the value of a trade at the time of its creation and its final execution. This happens on CEX - centralized exchanges due to the difference in prices for buying and selling and the amount of available liquidity at certain prices in the order book.
The price impact happens due to the limited liquidity available for the transaction. The exhaustion of available liquidity significantly reduces the price of an asset and results in the loss of money on any transaction associated with it.
This is especially true for large transactions of hundreds of thousands or millions of dollars. There are a lot of such transactions in the crypto market, and they take place every minute.
In the new DeFi niche, liquidity problems are more obvious. Sometimes a $50k or $100k dollar trade is enough to make the token rate fluctuate by 10-15%.
If you have ever lost money on large trades in liquid assets or on small trades in illiquid assets, then you will probably be interested to know how to save money on this and how much potential losses you can avoid without affecting the market price.
Discount & premium
The platform allows offer makers to set a price that is favorable to both buyers and sellers. As a tool to influence demand, we have come up with two options that can be used as desired. For this reason, you may use discounts to sell an asset or premium price to buy a particular token.
A discount is simply a reduced price you set on an asset you want to buy or sell.
A premium is an increased price of an asset.
If you are a bidder, then you can offer your conditions to the PART offermaker of the deal. If you are an offermaker, then you can specify your conditions for the Best Bid of the deal.
Now you have the opportunity to compare in real time the conditions for transactions on Marsbase dOTC with those presented on the top CEX and DEX exchanges (Huobi, Binance, Uniswap etc.)
We present you Marsbase Smart Calculator. It will take into account not only the final cost of buying / selling, but also display the price of gas per transaction, as well as the average commission of exchanges.
We are currently working on a detailed video guide on how to use Marsbase's Slippage and Price impact calculator. For your convenience, the text version of the guide is also presented below.
- To get started, select the trading pair that interests you. Let's say it's LOOKS/USDT.
- Specify the number of tokens you plan to exchange.
- Click "Calculate".
- The calculator will show the potential losses on the CEX and DEX, taking into account slippage, the impact on the price.
As can be seen from the example, the losses on a centralized exchange in such a transaction will be simply gigantic. 40% of the total trade volume will disappear. Instead of half a million dollars, you will receive a little over $300,000.
There will be smaller losses on the DEX. But keep in mind that there is less liquidity on DeFi exchanges, which means that such a large deal will greatly affect the price of the token. Most likely, the price impact will be even higher and entail more serious consequences for the price: a negative mood of the token community and even a panic sale due to a huge liquidity drain.
- Once you understand how much is lost on CEX/DEX, try comparing these terms with Marsbase. Click on Compare with Marsbase. Next, you will see the following window.
Here you can set a different size discount. Even the biggest discount will be much more advantageous for you. This way you will attract more bidders who will buy up the offer at a price much lower than the market price. And you will not lose as much as you would spend on CEX or DEX. In addition, you avoided panic in the token community.
- Feel free to switch to the Marsbase platform and trade without huge losses.
Subscribe to our official channels and follow the news about the MBASE token, platform updates and the introduction of new Marsbase features: https://linktr.ee/MARSBASE
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