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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 dSLTP, the first-ever decentralized stop order protocol for DEXs. Built on Orbs’ infrastructure, dSLTP brings reliable, robust, and efficient stop-loss and take-profit execution to decentralized trading, all without compromising security and decentralization.
dSLTP joins the Orbs Advanced Trading Orders Suite, alongside dLIMIT and dTWAP, expanding DeFi’s capabilities with CeFi-grade trading features.
Stop orders are critical 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 gains at target levels, and automate execution without needing to constantly monitor the market.
A stop-loss order automatically sells a token once its price drops below a predefined level, helping traders limit losses in volatile markets. Stop-loss orders are essential in fast-moving markets, offering peace of mind and protection. A take-profit order automatically sells once the price reaches users’ target profit level.
When used together, stop-loss and take-profit create a balanced risk/reward strategy, maximizing upside while controlling downside exposure. Until now, such tools were primarily available only on CEXs. With dSLTP, this changes, making advanced order automation accessible directly on DEXs. dStopLoss comes with a specialized UI 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 up the optimal configuration that suits their needs. Stop-market orders guarantee that users’ orders will be executed once the stop price is triggered.
However, in fast or volatile markets, slippage can occur, and the executed price may be significantly worse than the trigger price. This means the amount of output tokens received could be lower than expected.
Stop-limit orders protect against receiving a worse price than the specified limit. Once the stop price is triggered, the order will execute only at the limit price or better. The downside is that if the market price falls below the users’ set limit, the order may not execute at all.
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