Arken Finance, Launching a New Feature: Stop-limit Order for AMM (SLAMM)

Today marks the day Arken Finance officially announces the official launch of a New Feature: Stop-limit Order for AMM (SLAMM).

In June 2022, Arken Finance put out the BETA version of our Stop-limit Order for AMM (SLAMM) to a group of users who had signed up for the BETA testing. After some improvements and alterations, the SLAMM feature is now officially launched and ready for our users to do risk management and set conditional trading orders strategically. As always, our users always deserve the best tools for trading!

For those who are still not familiar with how Stop-limit Order in traditional finance and our version, for AMM, work, here’s a quick rundown of what they are and how they are different.

How Does a Stop-limit Order Work & What Are the Downsides?

In the financial environment, a stop-limit order is a limit order that has a stop price to trigger the order execution. When the market price reaches the stop price, it triggers the limit order. Note: the limit price doesn’t necessarily need to be the same as the stop price.

There are 2 parts to a stop-limit order. First is the stop price, which is the price that will trigger an action, and the second is the limit price. At this point, the trade will execute as long as it can be filled at the limit order price or better.

But what’s often occurred with the limit order tools offered now in the market is that the trade may not be executed, which can saddle the investor with a substantial loss in a fast market.

This often agitates many DeFi traders who are using the stop-limit order feature currently offered in the market right now. One of the reasons why sometimes stop-limit orders are not executed is that most limit orders are done with an order book method. Sometimes when the market is illiquid, it often results in market volatility and a larger gap in spreads. Spread is the difference between the bid price and ask price prices in the order book method. The larger the spread gap is in exchange, the higher the chance that transactions are not executed.

Furthermore, in many cases, the limited liquidity pool is also the problem. When the demands in the LP do not meet your order, it can result in eccentric prices, orders not triggering and transactions not executing as expected.

How Will SLAMM Help With Your Trades?

Here are the benefits that Arken Finance stop limit order will provide:

1. It is the fastest engine to respond to stop prices.
2. It significantly increases the chance of order execution by swapping on AMM protocols, which we integrated from several liquidity pools. No more order books, no more spreads.
3. Last but not least, it is flexible and can be applied to several strategies for both buying and selling

For the full detail, please click here. Additionally, if you prefer a simplified video explaining SLAMM, you can visit here.

Some Executions of SLAMM

SLAMM allows our users to perform various strategies when investing in DeFi tokens. Here are 4 examples of the actions which give you an edge on the market:

Stop Loss

A sell-stop limit is an order to sell a specific token or coin only once the price reaches the specific stop value set by the users. It helps traders calculate what position size to take and how much risk they can accept in a single trade.

Lowest ฺBuy

A buy-limit order is an order to purchase a specific token or coin at or below the market price.

Follow Buy

A buy-stop limit is an order to purchase a specific token or coin only once the price reaches the specific stop value set by the users. This is the strategy for catching a breakout when it happens in a timely manner.

Take Profit

A sell limit is an order to sell a specific token or coin at the price higher than the market price.

So what do you think about our Stop-limit order for AMM? Would you be interested to try and see how will it help with your trades and win the market over? Or maybe you will be able to sleep in peace at night, not worrying about price fluctuations, because Arken will monitor your assets for you 24/7.

Thank you and happy trading!