ParaSwap is a DeFi middleware and aggregator that unites the liquidity of decentralized exchanges and lending protocols into one comprehensive and secure interface and APIs while offering the best route to exchange any asset for another.
By aggregating all these pools into one source, users can either exchange for the best rates using an interface, or use APIs to incorporate the best rates and liquidity into any project. Be it spot trading, limit orders, or even NFT trading, ParaSwap provides the essential gateway to the best liquidity!
ParaSwap uses the Balancer 80/20 PSP/WETH liquidity pool token as part of its Social Escrow staking system. This system, inspired and then proposed to the ParaSwap DAO by Balancer governance, allows for PSP used for governance and staking to also provide liquidity for the token, drastically reducing the amount of capital needed for healthy liquidity.
ParaSwap integrates Balancer pools as liquidity sources on Ethereum, Polygon, and Arbitrum.
The integration was achieved by utilizing ParaSwap’s DexLib: a public open-source library which enables decentralized exchange developers to integrate their DEX with ParaSwap.
By routing trades through several liquidity sources, including Balancer pools, ParaSwap aims to provide the best swap rates available, even using multi-hops to trade through intermediary assets.