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Orbs has introduced dSLTP, a decentralized system that enables on-chain stop-loss and take-profit orders for DEX users without relying on centralized intermediaries.
Orbs, the decentralized Layer-3 (L3) blockchain, has introduced dSLTPthe first ever decentralized stop order protocol for DEXs. Built on Orbs’ infrastructure, dSLTP ensures reliable, robust and efficient stop-loss and take-profit execution for decentralized trading, all without compromising security and decentralization.
dSLTP joins the Orbs Advanced Trading Orders Suite, alongside dLIMIT and dTWAP, expanding the capabilities of DeFi with CeFi-quality trading features.
Stop orders are crucial tools for strategic trading and risk management. They help traders: protect their portfolio with stop-loss orders that limit potential downside, secure profits through take-profit orders that automatically lock in profits at target levels, and automate execution without having to constantly monitor the market.
A stop-loss order automatically sells a token once the price falls below a predetermined level, allowing traders to limit their losses in volatile markets. Stop-loss orders are essential in fast-moving markets and provide peace of mind and protection. A take profit order is automatically sold once the price reaches the user’s target profit level.
When used together, stop-loss and take-profit create a balanced risk/reward strategy, maximizing upside and controlling downside exposure. Until now, such tools have mainly been available only on CEXs. With dSLTP this changes, making advanced order automation accessible directly on DEXs. dStopLoss comes with a specialized user interface that can be easily integrated and customized by any DEX.
dSLTP supports both stop-market and stop-limit orders, giving users the ability to set the optimal configuration to suit their needs. Stop market orders guarantee that users’ orders will be executed as soon as the stop price is activated.
However, in fast or volatile markets, slippage can occur and the executed price can be significantly worse than the trigger price. This means that the number of output tokens received may be lower than expected.
Stop limit orders protect against receiving a worse price than the specified limit. Once the stop price is activated, the order will only be executed at the limit price or better. The downside is that if the market price falls below the limit set by the user, the order may not be executed at all.
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