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How to Minimize Slippage on Your Six-Figure DeFi Pulse Index Buys
How to Minimize Slippage on Your Six-Figure DeFi Pulse Index Buys
Compared to typical DEX trades, flash minting can offer more cost-efficient large trades by minting new DPI units from the underlying index components. This is especially helpful where the cost of slippage would exceed the cost of gas for buying each t...
6/18/2021
Index Coop
When to use flash mint
Slippage, the difference between a trade’s quoted price and executed price, is a costly impediment to larger trades.
Fortunately, a new TokenSets feature called flash minting reduces slippage for large trade sizings. A simple decentralized exchange (DEX) trade is usually cost-effective for smaller trades when you are likely to encounter low slippage. However, at some threshold on larger trades, you are likely to encounter significant (>1%) slippage. That’s where flash minting can offer cost savings.
Compared to typical DEX trades, flash minting can offer more cost-efficient large trades by minting new DPI units from the underlying index components. This is especially helpful where the cost of slippage would exceed the cost of gas for buying each token and minting a new index unit.
How flash minting works
The flash mint feature allows you to buy DPI components and then mint a new DPI unit. Here’s how that works:
You send your currency of choice (ETH, USDC, or DAI for example) to a smart contract.
Your currency is then exchanged into the correct amount of underlying DPI assets necessary to mint new units
New DPI units are minted and sent back to your wallet
4 Steps to Buy DPI Using Flash Mint
Go to the on TokenSets and connect your wallet.
For large trade sizing, make sure that you are on the correct UI for using flash minting and not the Tokensets UI for regular DEX exchange.
Note: You will not find the flash mint UI from the Tokensets home page, use the above link instead.
Hovering over the ‘info’ icon will indicate whether you are on the correct UI.
2. Once connected, hit ‘Buy’ on the DPI page
3. Enter the amount of DPI you would like to buy
4. Complete your order
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