Ranged limit orders
Convexus allows users to open a limit order to complement market orders, which we are calling ‘ranged limit orders’.
LPs can deposit a single token in a custom price range above or below the current price. If the market price enters into their specified range, they sell one asset for another along a smooth curve while earning swap fees in the process.
Range orders may prove particularly useful for profit-taking and buying market downturns, both on long and short time frames, enabling investors and traders to partake in crypto markets in a decentralized manner while placing their orders in a proactive manner without needing to monitor markets 24/7.
A buy limit order is an order to purchase a token at or below a specified price. By using a limit order to make a purchase, the trader is guaranteed to purchase a token at a specified price or less.
In this example, the current price of the ICX is 0.7 bnUSD per ICX. A trader would like to sell their bnUSD for ICX when the price of ICX reaches 0.5 bnUSD per ICX. The trader can provide bnUSD at a price range of 0.5-0.49 bnUSD and have their buy order filled when the spot price crosses their price range. Once the price of ICX goes below the price range of 0.5-0.49 bnUSD, the trader's liquidity position will go from 100% bnUSD to 100% ICX.
A sell limit order is an order to sell a token at or above a specified price. By using a limit order to make a sale, the trader is guaranteed to sell a token at a specified price or more.
In this example, the current price of the ICX is 0.7 bnUSD per ICX. A trader would like to sell their ICX for bnUSD when the price of ICX reaches 0.8 bnUSD per ICX. The trader can provide ICX at a price range of 0.8-0.81 bnUSD and have their sell order filled when the spot price crosses their price range. Once the price of ICX goes above the price range of 0.8-0.81 bnUSD, the trader's liquidity position will go from 100% ICX to 100% bnUSD.
Last modified 1yr ago