Pushing DeFi Boundaries: Swapr Integrates with CoW Limit Orders

Pushing the bounds of decentralized trading, Swapr has integrated with CoW Protocol Limit Orders. Coupled with Swapr’s decentralized front end, this integration gives users access to the most secure and comprehensive Limit Order offering on the market today.

Beside giving users all the usual benefits, what really sets CoW Limit orders apart is its ability to provide users with an additional 4 distinct features:

• Unlimited order management — you can set and cancel as many orders as you want without paying any gas fees.
• Unlimited order placement — using the same crypto balance, place as many orders as you want. You also have the option to keep them active for up to a year and your orders only stop filling once the sell token limit has been reached.
• Surplus-capturing — by leveraging its batch settlement Coincidence of Wants, CoW is able to capture favorable price movements between the time orders are sent and the time they are settled on-chain, with the upside of these favorable price movements benefiting users.
• MEV protection — synonymous with CoW Protocol, MEV stands for Maximal/Maximum Extractable Value. It refers to the maximum value that can be extracted from block production in excess of the standard block reward and gas fees by including, excluding, and changing the order of transactions in a block. MEV harms participants by, in a sense, imposing a sort of invisible tax on users.

What is a Limit Order?

A limit order is an order to either buy or sell a specific token for another token, at a specific price or better, that remains open for the specified time period or until the order is filled. So a buy or sell limit order will be executed at the limit price or better.

It is important to remember, a limit order guarantees the price, but not the filling, the quantity condition, of the order. What this means is: the order will execute at the specified price or better, irrespective of the related quantity on offer to fill that order. In the event that the quantity condition of the order can not be immediately satisfied, the order will remain open until the order is filled or the expiration date is reached.

If the quantity condition of the order is not satisfied prior to the expiration of the limit order, the order will be considered partially filled (or partially executed).

Please note: Currently CoW Protocol only supports fill-or-kill limit orders. With fill-or-kill limit orders, the order is either executed in its entirety, or not at all. Partially filled orders are on the horizon and will be supported in the future.

How to place a Limit Order

Limit Order Explainer Image

Items 3, 4 & 5 in the list below have been marked in yellow on the diagram above to clarify where these actions need to take place:

1. Connect your wallet to the Swapr dapp. Currently, limit orders are only available on Mainnet and Gnosis Chain, so select either one of these.
2. Click the [LIMIT] button that is visible between the [SWAP] and [BRIDGE SWAP] buttons on the SwapBox.
3. On the top right choose the token you wish to “sell” and set the amount you wish to sell on the left.
4. Below the token you have chosen to sell, choose the token you wish to “buy” only. Do not enter the buy price here.
5. On the left below the token you want to “buy” you will see [SELL {chosen token} AT]. This is where you put the price of the token you are “selling”
6. Choose the desired length of time for your Limit Order.
7. Click the [APPROVE {chosen token}] to give Swapr access to your {chosen token} — you will be required to approve this in your wallet and will have to pay the relevant gas fee here. This is the only time that you will pay a fee.
8. Click the [PLACE LIMIT ORDER].

And you’re done! Limit order placed.

Please note: your funds are not locked after placing a limit order. You can place as many orders as you like no matter what balance you hold in your wallet. CoW Protocol will simply stop filling your orders once you run out of tokens and resume filling the orders once you replenish your wallet.

How you pay virtually no fees?

What truly makes CoW Protocol stand out? Giving users the ability to place or cancel as many orders as they like, absolutely free. They do this through their unique fee structure and the way in which they fill the orders. By utilizing numerous decentralized AMMs, Aggregators and so forth, they create liquidity pools from which to fill orders. Only once the order executes is a fee charged and this is only to cover the transaction fee for the liquidity pool.

CoW Protocol takes no fee for itself. It collects its fees from the surplus it generates from within these liquidity pools when orders execute. So with this unique fee structure they ensure that traders always get the token amounts they ordered at the limit prices they have set or better, and with minimal fees.

Reasons your order has not been filled?

As with all trading, nothing is guaranteed and there are a number of reasons that Limit Orders do not fill. We have listed the most common reasons here in the hopes of assisting your decision making process when placing your limit orders.

1. The limit price hasn’t been reached. Your order will remain open until the specified price has been reached or the time expires.
2. There is limited volume. CoW Protocol currently only supports fill-or-kill orders, so if there isn’t enough liquidity to fill an order completely, the order doesn’t get filled at all.
3. You do not have enough tokens in your wallet to complete the trade. For example, if you created a limit order for XXX DAI and you have less than XXX DAI in your wallet when your limit order is triggered, the transaction will not go through.
4. Your fee could not be covered. CoW Protocol covers fees on limit orders by executing the order at a slightly better price than the limit price (surplus-capturing). So, if the market price reaches your limit price but does not exceed it, then there is no surplus-capturing to cover your fee and your order will not execute.

Disclaimer: The content in this article is purely informational and intended to help users navigate Swapr and the features available in the user interface and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. Swapr, DXdao, their affiliates, agents, directors, officers, contributors or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

About Swapr: Swapr is a multi-chain automated market maker (AMM), deployed on Ethereum mainnet, xDai, and Arbitrum. Swapr is the first AMM to allow for adjustable swap fees through governance, as well as the first DAO deployed DeFi protocol on Ethereum; developed organically within the DXdao community.

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