Introducing Limit Orders on Sovryn 🤩

You’ve been asking and we’ve been listening. We all use Sovryn on a day-to-day basis, so we know how useful this is gonna be!

Sovryn represents a community of progressive, like-minded individuals. It represents a way of life where individuals have decided that they want to take responsibility for their financial future, without the need for a middleman.  

We understand that our users didn’t choose this path because they found Sovryn. Rather, they found Sovryn because they chose this path. 

As one of the essential tools in the financial freedom toolkit, Sovryn just got a whole lot more automated.

Let us paint you a picture. Sleeping Sovryn Badger has spent the whole day researching the market, scouring Twitter for sentiment and insights. He’s put so much time and energy into it that it’s night time now and he’s fallen asleep at his desk. 

When he wakes in the morning and checks the charts, he sees that Bitcoin took a dip overnight, as he had suspected it might. But the price has risen since then and is nearly back to where it was. 

Sound familiar?

He missed the dip...

What Sovryn Badger can now start doing on Sovryn, is set limit orders in line with his thesis of the market. If Bitcoin hits a certain price, over a given time period, he can sleep soundly knowing he has a buying order in place. Or, if the price of bitcoin reaches a certain point where Badger anticipates resistance, he can sell and bank some profits.

He never has to miss that dip buying opportunity again.

Unlike a market order, which is an order to buy or sell an asset at the market’s current, best available price, a limit order is an order to buy or sell an asset when it hits a predetermined price in the future. A limit order will only get filled if the price reaches the price you set, or better.

While a market order ensures execution of the order to be filled, it does not generally guarantee a specified price. A limit order, on the other hand, does not guarantee execution. Your specified price may not actually get hit. If the price of the asset reaches the price you set, the order will be successful once it gets completely filled, depending on market conditions. Partial fill limit orders will be available in a follow up release.

Limit orders are used in anticipation of future price action, so they usually have an expiration that can be adjusted. You can set the expiration so that the order will either expire or be filled within a specific amount of time. It’s also possible to place orders with no expiration, and simply cancel them as needed.

Sovryn now supports limit orders for spot trading orders. Margin limit orders are coming very soon! The limit order functionality is decentralized and trustless. Autonomous entities called ‘filler bots’, following the parameters you set, fill the orders. They are incentivized to do so via a fee-sharing mechanism. 

Let’s dig a little deeper. 

When you create a limit order on Sovryn, the order gets added to an orderbook on a smart contract on testnet. Filler bots observe the orderbook as well as the prices on the AMM. If there is a match, the bots have complete autonomy to fill the order, as long as it meets the specifications set in your limit order.

Where possible, fees are packaged into the limit order itself. In the case of an exchange between native currency (RBTC) and any other token, you need to deposit the total amount to be swapped, including the transaction fee. If, however, the transaction wasn’t to or from RBTC, for example, SOV/XUSD, a filler bot would pay the gas fee on your behalf. And the filler bot would only fill the order if the price, including slippage and fees, was better than the price you specified in your limit order. 

Filler bots are incentivized to listen for and fill orders because they earn a profit. To execute the order, they call the smart contract for the pair you requested. If the price reaches your limit order, the smart contract will fill the order by sending funds to the AMM or loan token contract first, and in the process, send the limit order fee to the filler bot as profit.

We’d like to point out that for those of you who are technically savvy, you can set up and run a filler bot. However, we do not provide technical support for this and all risk is placed on the individual. If this is something you have the technical know-how for and would like to explore, follow the link to the repo here.

As part of this feature update, we have also developed a new email notification system for limit order fills, margin calls, and liquidations.

Margin call and liquidation notifications will be sent under the following conditions:

• Recipient: 2x, 3x leverage positions. Margin: 30%
• Recipient: 2x, 3x, 4x leverage positions. Margin: 25%
• Recipient: 2x, 3x, 4x, 5x leverage positions. Margin: 20%
• Recipient: 2x, 3x, 4x, 5x leverage positions. Partial liquidation.
• Recipient: 2x, 3x, 4x, 5x leverage positions. Full liquidation.

The email notification system has been designed with privacy in mind. There are three distinct features that demonstrate this care for privacy:

1. The emails do not contain any references to specific transaction amounts, RSK addresses, or RSK transaction IDs. This minimizes the risk of potentially identifying information in the email.
2. The email address that you sign up with is encrypted at rest in Sovryn’s email database. This means that if the database is leaked or hacked, email addresses will not be disclosed unless either the attacker has access to the database while the email addresses are temporarily decrypted or the private decryption key is also compromised.
3. The RSK address that you sign up with is stored in a hashed format. This means that if the data in the database is leaked or hacked, and anyone who gains access to the data is not already aware of its association with Sovryn or RSK, it will not be immediately apparent what the purpose of the database even is.

You can unsubscribe from email notifications by clicking ‘switch off’ in the notification settings in the app, or by clicking one of the unsubscribe links in the emails you receive.

In addition to an email notification, liquidations are also now shown in a new margin position history under each position. So, if you get a liquidation notification you can also look at the history to see the details.

We want to provide you with the core functionality of a centralized exchange but in a decentralized, trust-minimized manner where you can maintain control of your privacy and build your ‘NoKYC’ stack! 

Limit orders on Sovryn offer Capital Efficiency. Unlike with legacy exchanges, you can place unlimited new orders, all using the same underlying capital. Every order that gets filled, generates profit for the filler bots. This means that you can use your funds more efficiently and earn from the volatility of the market.  

Limit orders on Sovryn will allow you to really start automating your hyper-hodling!

Limit orders have far and away been one of the most requested features on Sovryn. And the wait is finally over. 

So, head on over to the dapp to get started with limit orders or take a look at more detailed guide.

Stay Sovryn