We are thrilled to announce the launch of the Limit Orders module - a powerful & highly requested feature that significantly enhances our users’ trading experience on dapp.chainge.finance
What Are Limit Orders?
A limit order allows traders to set specific prices at which they want to buy or sell a particular asset. Unlike market orders, which execute immediately at the current market price, limit orders ensure transactions only occur at the specified price or better. For buy orders, this means execution will only happen at the limit price or lower, and for sell orders, at the limit price or higher. This allows traders to control the exact price they are willing to transact and is particularly useful for those waiting for more favorable market conditions. While limit orders are ideal for patient investors seeking lower purchase prices, there’s a risk of missing out if the market doesn’t reach the target price and the order may not be filled.
Available Chains in the 2.2.0.1 Version
In this initial rollout, limit orders are available on the following chains:
Binance Smart Chain
Arbitrum
Ethereum
Optimism
Base
Polygon
Avalanche C-chain
We are committed to expanding this list and many other chains will be gradually integrated to ensure an all-encompasing experience for users.
Why Use Limit Orders?
- Price Control: Set the exact price at which you want to buy or sell, and within which time-frame, ensuring you get the best possible deal.
- Efficiency: Automate your trading strategy by setting limit orders, reducing the need to constantly monitor the market.
- Flexibility: Benefit from market movements without having to be online 24/7.
How to Use Limit Orders
Using Chainge Limit Orders is straightforward and intuitive. Here’s a quick guide to get you started on dapp.chainge.finance:
- Select Your Chain and Tokens: Choose the chain and tokens you want to trade. In the currently available version, you can execute a limit order on Binance Smart Chain, Arbitrum, Ethereum, Optimism, Base, Polygon and Avalache-C chain
2. Set Your Order: Specify the price, amount and timing for your trade and place the limit order. Your order will be executed once the market reaches your defined price (and gas is fully covered) if it is reached within your defined time-frame.
3. Monitor and Manage: Keep track of your orders in the dapp “Orders” section and make adjustments as needed.
FAQ
Q: Who will pay the gas fees?
A: When placing a limit order, users will cover the gas fees related to the approval transaction. However, they do not pay for the gas required to fulfill the limit order; this cost is covered by the takers and users will receive the exact number of tokens they intended to swap into.
Q: Are assets leaving users’ address after they place the order?
A: No, the assets remain on the user’s address until the order is executed, ensuring security and control over their funds. Users can move or manage their tokens as they wish while the limit order is active. However, if the remaining tokens on the address fall below the amount specified in the limit order, the order may either fail or be partially executed.
Q: I placed an order to sell wETH at $3500. Why hasn’t the order been executed, even though I see the current price is $3500 in some markets?
A: The execution of your limit order depends on takers who find the order profitable. Takers cover the gas fees for executing limit orders, so they are more likely to execute your order when the price difference between your order and other DEXs justifies the gas cost. Additionally, liquidity issues can affect execution. For example, if you want to sell 10,000 ETH at $3500 and the current price on other DEXs is $3520, your order might be partially filled. Takers may wait for the price to reach $3500 again or higher before fulfilling the rest of the order.
Q: What happens after a limit order expires?
A: After the expiry period is reached, the limit order will be automatically canceled. Any portion of the order that has already been fulfilled will remain completed, while the rest will be canceled.
Q: Why do I need to use wrapped tokens like wBTC, wETH, wBNB, wMatic, or wAVAX to place a limit order?
A: Wrapped tokens like wBTC, wETH, wBNB, wMatic or wAVAX are used for DeFi limit orders because native assets (like ETH) are not ERC20 tokens and thus aren't directly compatible with many smart contracts and DeFi protocols. Wrapping ETH converts it into wETH, an ERC20 token, making it usable with these contracts. This allows it to be managed by smart contracts and integrated into liquidity pools and DeFi operations.
For ease of usage, users can directly wrap in wETH, wBNB, wMatic, or wAVAX directly in the Chainge dApp. However, BTC native can’t be wrapped in the web dApp but can be wrapped in the Chainge mobile app, as its underlying native chain is non-EVM compatible.
Q: What happens if I try and purchase a wrapped token (e.g., USDT <> WETH)?
A: If you purchase a wrapped token, your receiving asset will be the native token. For example, USDT <> WETH will result in receiving ETH.
Future Enhancements
The launch of limit orders is a significant step forward in our planned functionalities for this year and an integral part of our growth focus map. We are continuously working on adding more chains and enhancing functionality based on user feedback. Your insights are invaluable as we strive to improve and innovate.
At Chainge, we are dedicated to pushing the boundaries of what’s possible in DeFi. The introduction of limit orders is a testament to our commitment to providing cutting-edge tools that empower our users. We look forward to seeing how you leverage this new feature to enhance your trading strategies.
Happy trading!
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