Advancing DeFi Analytics: Efficiency Analysis with Decentralized Exchanges Comparison Service

ArXiv ID: 2411.01950 “View on arXiv”

Authors: Unknown

Abstract

This empirical study presents the Decentralized Exchanges Comparison Service (DECS), a novel tool developed by 1inch Analytics to assess exchange efficiency in decentralized finance. The DECS utilizes swap transaction monitoring and simulation techniques to provide unbiased comparisons of swap rates across various DEXes and aggregators. Analysis of almost 1.2 million transactions across multiple blockchain networks demonstrates that both 1inch Classic and 1inch Fusion consistently outperform competitors. These findings not only validate 1inch’s superior rates but also provide valuable insights for continuous protocol optimization and underscore the critical role of data-driven decision-making in advancing DeFi infrastructure.

Keywords: Decentralized Finance (DeFi), Decentralized Exchanges (DEX), Swap Rates, Blockchain, Liquidity Aggregation

Complexity vs Empirical Score

• Math Complexity: 1.5/10
• Empirical Rigor: 8.5/10
• Quadrant: Street Traders
• Why: The paper focuses on empirical analysis of 1.2 million transactions across multiple blockchains to compare DEX rates, with heavy implementation details on data infrastructure and simulation techniques, but contains minimal advanced mathematics.

  flowchart TD
    Start["Research Goal<br>Assess DEX Swap Efficiency"] --> Data["Input Data<br>1.2M Transactions across Chains"]
    Data --> Method["Methodology<br>Monitor & Simulate Swaps"]
    Method --> Comp["Computational Process<br>Compare Rates via DECS Tool"]
    Comp --> Find1["Outcome<br>1inch Classic consistently outperforms"]
    Comp --> Find2["Outcome<br>1inch Fusion consistently outperforms"]
    Find1 --> End["Conclusion<br>Data validates 1inch superiority &<br>guides protocol optimization"]
    Find2 --> End