Trading DeFi Narratives with Carbon Range Orders
Lately we’ve seen a pattern in the crypto markets. A regulatory action is announced against a centralized crypto service and its DeFi counterpart pumps.
Case in point: This week’s Paxos/BUSD action sent decentralized stablecoin issuer LQTY to a six-month high, surging 45%:
Another example is last week’s Kraken action — which led to liquid staking derivative governance tokens like LIDO, RPL, FRX pumping.
RPL chart:
How could you have used Carbon to trade the narrative?
- News drops
- Buy a bag
- Set a Carbon sell range order
As the token rises, your orders get executed across a range of prices, and you’re taking profits along the way.
Carbon Range Orders vs. Limit Orders
Carbon range orders have key advantages over manually setting limit orders — namely, that range orders are:
- Capital efficient: There is no need to pre-fund multiple orders; just deposit once and your liquidity trades across the selected range of prices as each price is hit.
- Less gas intensive: As a maker, you pay no gas for executed trades, no matter the size of your range. Takers pay the gas on trades, and your only gas costs are to create/withdraw the order.
True DEX Range Orders Haven’t Yet Existed, Until Carbon
Currently you can only mimic range orders on a DEX by providing single-sided liquidity in Uniswap v3 within a desired range. But as markets retrace, your orders get reversed due to the symmetry of Uniswap v3 curves.
Carbon’s asymmetric liquidity enables true native range orders. All Carbon orders flow in one direction and are therefore irreversible on execution. This allows users to set distinct buy and sell ranges which can be used to sell into pumps, buy dips, or to automatically buy low and sell high in perpetuity (recurring strategies).
Carbon trading strategies cater to any number of different market conditions, and other articles highlight backtests that further demonstrate Carbon’s novel trading functionality.
Learn more about Carbon:
More resources:
- Website: Carbondefi.xyz
- Read the litepaper, whitepaper summary, and patent filing
- Follow Carbon on Twitter
- Subscribe to the Carbon Medium
- Join the Carbon community on Discord and Reddit
