Settlement refers to the process in which a user executes limit or market orders on an order-book-based DEX.
These trades have to be finalized via a settlement process and need to be given permission by users to add back the assets processed from the trade orders into the crypto wallet.
Other involved fees charged to users for settlement often include transaction fees for opening and closing limit or market orders, swap fees for using aggregators, or liquidity provider fees for using an AMM. While these are additional charges, they are often negligible compared to intermediary fees in TradFi, and very affordable and fast for blockchains with high transaction speeds and low gas fees like Solana and Avalanche, allowing users to execute small to high volume trades with any amount using flexible strategies.
Hisham Khan comes from a decade-long background in managing and building robust and innovative financial and enterprise technology. With an extensive career at Bloomberg and based in New York, Hisham has worked as a project manager with some of the world’s top engineers. It was here where he discovered the transformative impact of cryptocurrencies, and has since left Bloomberg to build comprehensive and accessible trading tools through Aldrin. His core mission is to make advanced crypto trading and strategy development available for everyone.