ITGR token is in the spotlight. What benefits does it offer?

Integral SIZE is a relatively new decentralized exchange that recently attracted investors’ attention. The team designed this platform specifically to execute large orders on a blockchain. Thanks to Integral, investors and traders will be able to execute orders faster and pay only a time-weighted average price (also called TWAP) instead of exorbitant fees. That’s especially beneficial for new traders, considering the hefty expenses they face when it comes to using the Defi services. After all, it’s a big deterrent for average people who want to become part of the crypto world. Sometimes they simply don’t have enough funds for both trading and platform fees. Experienced traders will also benefit from lower expanses.

Integral SIZE developed a new strategy to minimize a large order’s price impact. It offers customers improved prices and makes various opportunities more accessible for both amateur and professional traders. The Integral team has built Integral SIZE. This pseudonymous team includes financial engineers, mathematicians, and coders. Among its projects is also Integral FIVE. The latter is a great DEX that enables customers to execute large orders of token pairs with high liquidity.

The company also launched its hot native utility token ITGR on June 11, 2022. The price of these ERC20 tokens was 0.98 USD during the initial coin offering. The total supply of tokens was 300.000.000, but only 25% was available for sale at that stage.

Integral offers to trade by using TWAP. How does it work?

TWAP, or a Time-Weighted Average Price, is a great trading algorithm. It’s based on the weighted average price. Traders use the latter to execute bigger orders without making an excessive impact on the market price.

Market participants mostly use TWAP to distribute large orders throughout the trading session. For example, if you want to buy 100,000 BTC, you could impact the market greatly with such a big order, causing the Bitcoin price to skyrocket. To avoid that, you can use TWAP Strategy and define a time period for buying the crypto. As a result, you will buy BTCs in smaller quantities for several days instead of getting all of them in one day. The TWAP of the large order is essentially the arithmetic average of the prices used to execute such sub-orders.

TWAP has lots of benefits. It not only minimizes a large order’s price impact but also often causes price improvement. There are several reasons for that. For instance, using TWAP lowers the possibility that other traders will notice your large order and start buying or selling the same crypto. Besides, market liquidity has a chance to increase during the intervals between orders while using TWAP.

While such a strategy is very useful if you want to place large orders, most traders can’t use it due to various obstacles. One of them is transaction costs. If the customer splits his order into too many pieces, he might spend more money on gas and fees than on actually buying BTC.

Moreover, intervals between orders give experienced traders time to respond to instantaneous demand for liquidity in traditional finance. But that doesn’t work for CPAMM as, typically, individual LPs manage its liquidity. They are not quick enough to respond promptly to increased demand for liquidity. That makes it meaningless to extend the execution’s time window.

How will Integral SIZE solve such problems? 

Integral SIZE plans to introduce a new design. It will deliver the price-impact-mitigating effect much like physical TWAP. However, the users won’t need to split their orders or pay extra fees. The company will use blockchain technology to ensure seamless transactions. 

Once the trader submits the order, they will need to wait 30 minutes for the orders to go through the smart contract before interacting with the pool. The protocol will pick up price information from the Uniswap V2 oracle during this time, calculating TWAP. After that, the protocol will be able to execute the whole order at TWAP. As a result, Integral SIZE will deliver the same result as physical TWAP would, and this platform will do that without actually splitting the order.