Automated Recurring Limit Orders Explained

Table of Contents

Carbon DeFi introduces a new way to trade onchain with Automated Recurring Limit Orders.

Strategy makers on Carbon DeFi have the ability to create two separate limit orders, one to buy a token and the other to sell a token, at whatever price points they choose.

These two orders are then linked together. Linked orders result in acquired funds automatically rotating between them, creating an endless trading cycle without need for manual intervention.

Whether partially or fully filled, trades are irreversible, and makers no longer need to worry about an order being undone should the market retrace. Tokens will only be available to take at the price specified by the maker. Because the price quoted by the maker is exactly what they receive when the trade is executed, makers suffer no slippage on filled orders. In addition, makers on Carbon DeFi pay no gas when the trade is executed, and there are currently no maker fees on Carbon DeFi.

Order Prices:

For each order, makers have the ability to choose a single specified price or a range of prices to buy and sell their tokens.

The option to create a range limit order has multiple benefits. For example, makers on Carbon DeFi now have the means to scale in or out of a position without the need to create multiple orders within two desired price points.

Funding:

Makers have the option to fund one or both orders.

With zero obligation to fund both orders, users have the ability to create a limit order with funds they don’t yet have.

For example, a maker may create an $ETH/$wBTC automated recurring limit order as follows:

Set a specific price for an ETH buy order funded with 1 wBTC. Set a specified price for a wBTC sell order funded with zero ETH. These orders are now linked.

As the wBTC is traded for ETH, the newly acquired ETH automatically rotates to fund the sell order. This ETH is now available for takers to trade against at the desired price originally set by the maker at the time of creation.

Management:

After a strategy is created, it will appear on the “My Strategies” page.

Carbon DeFi provides makers with multiple ways of easily managing automated recurring limit orders in a gas efficient manner.

Modify Pricing: Modify pricing allows makers to quickly adjust the prices they choose to buy and sell their tokens, all without having to cancel orders, withdraw funds, redeposit funds, or create new orders.

Security

Automated recurring limit orders are native to Carbon DeFi and require no oracles or hooks, eliminating the risk of oracle extractable value (OEV) and other major security concerns in DeFi. In addition, Carbon DeFi has undergone three extensive audits prior to release.