I am looking for a way to get most efficient

to dUSD from USDT. As far as I can see there are only two ways. Swap USDT to DFI and then to dUSD. Or deposit USDT as an collateral and mint dUSD. The former involves two swaps which leads to loss of assets due to Slipage and the latter only allows me to have 66% working capital. Isn't there a way to easily swap from one stable coin to the other? A clean 1:1 swap with some fee.

What’s wrong with USDT>dUSD on the DEX?

The system is free market. You only lose a small, less than 0.5% fee when swapping and if there is a price difference between DUSD and dUSDT, which nobody controls.

Market forces at work; supply & demand...

So adding USDT as collateral and minting DUSD at 5% interest makes sense to you does it?! To combat these market forces at work?

I only see a USDT->DFI pool so it takes 2 swaps

That's correct. About 0.5 to 0.6% slippage to be expected for the 2x swap.

I don't mind the fee, but the Slipage going into and out of DFI. And as there are no limit orders I kinda need to slice the amount to swap in pieces and then take breaks in between the swaps.

Depends on your preferences. What I can say historically over the last weeks is that if you are patient for a couple days, chances are you could save ~1% on your swap vs. current rates. Obviously no guarantee the future will be like the past. Your choice if 1% is worth the hassle. It's the reward you earn from LM of dStocks in ~3 days.

The slippage shouldn't be too high. You can always custom limit.

Just for a hypothetical swap of 1 million, I bet you that 0.6% Slipage won't cut it

Yes, because you pay a percentage for swapping once from dUSDT to DFI and then again from DFI to DUSD

Of course not. If I'm not mistaken the slippage you set accounts for price differences occuring between placing the swap and execution. Pool movement due to a large amount swapped needs to be added to that. If you trade large sums, split it to smaller packages.

You'd need more liquidity

That's what I am saying, going from USDT/C to dUSD should not involve Slipage... By having to gateway through DFI

Frankly, I can neither control the trading volume of KuCoin for USDT/DFI nor the liquidity of DFI-dUSD on Defichain.

Well that slippage is technically the only "fee" you're paying. The Actual fee is (I think) 0.0001 DFI, so that's less than 1 $-Cent... On most other chains you pay higher fees than what we have here. Either the package as a whole (Defichain) works for you or it doesn't.

I understand, I was just saying. :)

But it would not be worth the hassle to make purely stablecoin pools.

No but you also have the liquidity provider fee.

There's really three types: The transaction fee (tiny, like .00001 DFI) The liquidity provider fee (depends on what you are doing, but it can range from 0.2-0.4%) Slippage (if you swap a lot relative to the pool, you might get a big slippage percentage, but you can try to limit it with the custom feature.

Thanks, Spencer! Let's assume I trade DFI to USDT. For the trade to be executed, I will need to set a minimum slippage of 0.2% in the light app, as the absolute minimum. Never seen a trade that would execute, if I put it below 0.2%. even for small amounts. So, does that mean I could end up paying 0.4% in total, as in LP fee 0.2% plus a 0.2% slippage? Or does the slippage amount I put include the LP fee I have to pay?

Let's say you want to trade 100 DFI to 500 USDT since the ratio is $5. Now, the system automatically takes 0.2% or 0.2 DFI/1 USDT (can't remember which, but either the DFI/USDT is paid back out to each of the LMers.) There will be some slight slippage but since the pool has millions in liquidity the slippage shouldn't be much. So in the end you might get something like 498.7 USDT.

So yes the slippage does not include the LP fee.

Usually slippage doesn't have much of an impact other than causing you to get a random number like 57.97204741 tokens, which is the only annoying part.

The slippage I put in the app is used to calc the "max_price" of the transaction. Thus essentially, the LP fee needs to be paid in addition to the "max_price" set - that's what I got from your comment above. Again, let's end this I guess. 😅 Too much talking on non-essentials!

When you swap you give the pool the assets you don't want, the pool keeps some as a fee and some as slippage, and then returns you the rest in the other coin.