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Welcome to our app spotlight series, where we highlight exciting and novel projects built on 0x. This week we spoke with 31Third about its on-chain brokerage solutions and how they rely on 0x Swap API to access deep liquidity and improve performance for traders.
What is 31Third?
31Third is an on-chain prime brokerage offering comprehensive trading, risk management, and financing solutions. Our flagship products deliver algorithmic execution and short-duration credit, improving capital efficiency across the entire investment lifecycle.
What problems are you solving?
Institutions prefer periodic portfolio rebalancing to maintain a diversified asset allocation and optimize returns while minimizing idiosyncratic risk.
Common rebalancing challenges are the lack of sufficient liquidity for smaller assets within individual exchanges and arriving at accurate portfolio weights after the rebalancing event. These issues can be effectively addressed through liquidity aggregation and algorithmic smart order routing. The synergies of these two products can reduce price impact losses and transaction costs close to zero while radically improving price discovery and operational efficiency. Another hurdle is the prevention of MEV losses, which becomes more pressing as institutional trading volumes rise.
How does 31Third bring together a leading edge solution?
Our quant-driven infrastructure combines on-chain interoperability with off-chain computational power.
Our risk management and financing solutions consist of on-chain lending pools and margin accounts managed by risk models that provide a real-time view of market and credit risk while monitoring capital utilization. We also support traders with capital to execute a wide range of investment strategies while also providing a predictable and reliable framework across all market conditions.
Our trading infrastructure combines customizable algorithmic execution logics with direct access to a wide range of on-chain liquidity sources and secure settlement. Our portfolio management SDK empowers traders to create on-chain strategies that execute trades autonomously according to predefined rules and risk targets.
Recognizing a gap in existing solutions, we also developed and launched batch trading, which enables users to trade with two or more assets or rebalance an entire portfolio in a single transaction. Our algorithmic smart order router finds the best prices and deepest liquidity not only across exchanges and market makers, but also across each traded asset, resulting in exponentially more analyzed trade routes and better prices for traders.
The entire product suite can be accessed directly via our portfolio management dashboard or API.
Why did you choose to build on 0x?
Our goal was to incorporate batch trading logic within an RFQ environment.
With a robust and highly composable infrastructure, comprehensive documentation, outstanding partner support, and the ever-expanding product suite and security improvements for institutional traders, 0x is way ahead of the curve.
The product and technical teams at 0x have been incredibly supportive.
In what ways is 31Third leveraging 0x Swap API?
On-chain markets are fragmented with limited liquidity. With 0x Swap API handling the complex liquidity aspects, we can dedicate our focus towards developing sophisticated algorithmic execution strategies.
We rely solely on Swap API to connect us with a diverse array of on-chain liquidity sources. Incorporating Swap API into our trading strategies allows us to do more than just execute trades, we can also access price data and on-chain quotes, which we can then utilize in our algorithmic trade optimization processes.
Can you tell us about being a 0x DAO grant recipient?
Our engagement with the 0x DAO started with a simple conversation in the 0x Discord over a year ago. With Nikita’s guidance and the support of the grants program at critical junctures, we have reached multiple milestones on the product and security audit fronts and developed our batch trading product from scratch into one of the most sophisticated on-chain execution engines.
What’s next for 31Third?
We recently launched the audited version of our execution engine, and we are now preparing to bring the product to market. Currently, our priority is developing our risk management and financing capabilities on the product side to offer true end-to-end prime coverage for institutional traders.
For more information, visit our website at 31third.com.
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