Introducing Bond Limit Orders
We’re thrilled to introduce our latest bond market feature: Limit Orders! This addition enables bonders to set a specific price for their transaction, ensuring it executes automatically when conditions are met. This not only streamlines the bonder experience but also fosters increased competition for bond discounts.
Changing the Game
Traditionally, users need to keep a close eye on market dynamics to acquire bonds at their preferred discount, because the exchange rate resets with each bonding transaction. In other words — if someone beats them to it, they have to wait for their discount again after the auction resets.
We expect limit orders to significantly reduce this waiting game, lower bond discounts, and further solidify our position as the leading permissionless bond marketplace.
System Architecture
Limit orders employ a hybrid on-chain and off-chain system that provides several key benefits to users. Off-chain services store approved limit orders, monitor market data, and execute orders for bonders, which enables gasless purchases, protection against MEV, and free order cancellations. Additionally, the system uses Sign-In with Ethereum to review your off-chain limit orders so they can’t be seen by other market participants. For more information, view our developer documentation.
Supported Markets and Assets
In this initial phase, limit order functionalities are enabled for all bond markets using the following supported quote assets:
How it Works — For Issuers
Activation of limit orders is a breeze — simply ensure that your bond market has selected one of the quote assets listed above. The best part? No extra configuration is required! Additionally, orders can be placed after market deployment but before it officially kicks off, providing you with valuable insights into market demand.
How it Works — For Bonders
Here’s how you can take advantage of Bond Limit Orders:
- Choose Your Price: Specify the conditions for when you want the transaction to occur (i.e. the USD price you want to pay for the payout token)
- Set Your Order Expiry: If the selected price or discount isn’t met within this time frame, the transaction will expire
- Determine the Amount to Bond: Indicate the quantity of tokens you want to exchange (i.e. your quote token)
- Place Limit Order: Approve the settlement contract and sign limit order conditions
Fees are deducted from the quote token you provide to cover gas costs. If the fee is above the maximum when conditions are met, the order will not be filled, but will remain valid and execute if gas fees decrease before expiry.
After placing an order, you can view your active orders for a particular market on the orders tab of that market page or see all of your orders across markets on the Dashboard.
Bond Protocol is the permissionless on-chain bond marketplace. Our mission is to power sustainable treasury growth and support protocols to acquire strategic assets, including their own liquidity.
