Limit Orders on FuxionHub

We’re excited to bring another powerful set of features to the FuxionHub App: the Limit Order Bot (LOB), and Limit Order Protocol made possible through our integration with the 1inch API.

What Are Limit Orders?

Let’s start with an understanding of what Limit Orders are.

A limit order is a type of order to buy or sell an asset at a specified price or better. Unlike market orders, which execute immediately at the current market price, limit orders only execute when the asset reaches the specified price. For example, if you want to buy a token at no more than $50, you can set a limit order at $50. The order will execute only when the token’s price drops to $50 or lower.

Limit orders allow users to pre-define their trading strategies, removing the need to monitor the market and execute trades manually, thus facilitating an overall more strategic trading approach.

The Limit Order Bot

LOB is a Fuxion Labs product that allows users to make and execute limit orders in a decentralized manner. Built to address gaps in existing limit order protocol solutions, the LOB is particularly effective for low-volume tokens, constantly monitoring prices and executing orders once the defined parameters are met.

Check out limit orders in the FuxionHub App here!

Understanding the 1inch Limit Order Protocol

The 1inch Network’s v4 Limit Order Protocol provides a unified order structure that combines traditional limit orders and high-performance RFQ orders. This makes it more efficient and easier to use, offering benefits such as improved gas efficiency, support for the permit2 feature, and enhanced support for various order types and dynamic exchange rates.

A 1inch limit order is placed into an off-chain database. You set a specific price target and terms of the trade. These orders are not sent to any one specific user; they can be filled by anyone, including the 1inch Aggregation Protocol. When the market price matches the price set in the limit order, a taker can fill it, covering the gas cost in addition to the trade’s value.

Bringing it Together

The Limit Order Bot in conjunction with our 1inch integration allows FuxionHub to service a wide range of limit order needs, from nascent emerging projects with limited liquidity, to established projects with consistent volumes.

At the time of writing, Fuxion Hub allows for limit order functions on the Ethereum network, and we are actively exploring functionality on other chains, stay tuned!

A Central Hub for the Decentralized World

At Fuxion Labs, we are committed to continuously enhancing our users’ experience by integrating new features and tools. The addition of limit orders is just one of the many steps we are taking to provide our users with a comprehensive and powerful trading platform. Stay tuned for more!