Advancing DeFi Analytics: Efficiency Analysis with Decentralized Exchanges Comparison Service

TL;DR

This paper introduces DECS, a new tool for comparing decentralized exchange efficiency in DeFi, using transaction data and simulations to evaluate swap rates across multiple platforms.

Contribution

The study presents a novel empirical tool, DECS, that provides unbiased, data-driven comparisons of DEX efficiency, aiding protocol optimization.

Findings

1. 1inch Classic and Fusion outperform competitors in swap rates.

2. Analysis covers nearly 1.2 million transactions across blockchain networks.

3. Validates the importance of data-driven decision-making in DeFi.

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.