Stop-Limits
Fast, Safe Accurate – Arken Finance, Introducing the Most Practical Stop-Limit for AMM in the Market to Our Users
Despite the current market sentiment for cryptocurrency, Arken Finance strongly believes in the limitless potential of this landscape. However, we have to admit that the current situation in the crypto market is still immature and unpredictable, as it is still in its early stage of innovation. This can be seen from the crashes of many cryptocurrencies in the past year, either from the fear, uncertainty, and doubt (FUD) or the uncontrollable market influences. Knowingly that is the nature of innovation in its early stage, it is hard to address that many people did significantly lose their money and stability beyond their limits in these volatile situations.
To prevent losses from such cases, many people stayed vigilant and choose to remain guarded and utilize the service of centralized exchanges (CEX). This is because most of the CEXs offer comprehensive tools such as Limit Orders and Stop-Limit for users to manage and reduce the risks of market crashes in some situations (Limit Order allows you to determine the price to buy/sell the token. While Stop-Limit allows you to set a condition to place a Limit-Order when the token reaches a specific stop price).
However, trading on centralized exchanges does not always solve everyone’s problems. In the DeFi landscape, the majority of the tokens are only available in decentralized exchanges and there are so many more tokens that are not listed and tradable on CEXs. On top of that, unlike the CEX which uses the Order Book system, DEX only allows the user to swap at the current price so it is very hard for users to find the right tool to help them with this type of trade. Arken Finance has finally fulfilled the wishes of our users.

Introducing Arken Finance’s Stop-Limit for AMM (SLAMM)

For the first time ever in DeFi, the team has developed a Stop-Limit for AMM (Automate Market Maker) to help our users manage their risks and execute their strategies for assets in decentralized exchange. Based on Arken Finance’s two distinct technologies: TxFlow & Best Rate Engine 3.0, we have developed a new technology. We strongly believe that this particular feature can help save our users the trouble of managing risks and reaching their limits.
Before jumping into how things work. We strongly recommend that users understand the differences between Limit Order and Stop-Limit Order in DeFi.

What is a Limit Order?

A limit order in DeFi is an order, created with a specific price. It’s a completely different system from the stock market’s limit order, as it is on a peer-to-peer basis. Your position will only be executed if matched with the exact opposite position from other users. You may be able to buy tokens at a lower price or sell them at a higher price with no regard to the current market price.
Unlike swaps, where trades are executed instantly at the current market price, a limit order gives you more control over the execution price. As limit orders are automated, you don’t have to monitor the market 24/7 or worry about missing a buy or sell opportunity while you are inactive. Please be aware that your buy limit order position will be precisely fulfilled by other users’ sell limit order position with the same requirements and likewise. Thus, is no partial fills for the limit order and you’ll get the exact amount of tokens at the exact price as you requested with no deviation at all.
In short, for Limit Orders, you control the buy/sell price of your own, without the influence of the current market price. However, do not mistakenly use limit order for the stop loss purpose!

What is a Stop Limit Order for AMM?

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.
How does a stop-limit order work? There are 2 parts to our stop-limit order:
First, the stop price acts as a trigger to place a limit order. Second, when the market price of a token reaches the stop price, it automatically creates a limit order with the custom price set by the user (limit price). Then, the order is executed across the integrated pools that Arken has.
In short, Stop-Limit Orders are executed when the current market price of a token reaches your desired price, then it is executed to get you the best price.
Comparing Order Types

How Are We Different?

Firstly, Arken’s Stop-Limit for AMM is extremely secure. Unlike other protocols, we do not get access to your wallet to execute transactions. Rather, we reserve the funds right at the beginning of the order creation and execute the order once ready. But no worries, if the order is not executed during the set timeframe, the reserved funds will be transferred back to your wallet.
Secondly, along with leveraging our core technology TxFlow and Best rate Engine 3.0, we are able to provide the fastest and most accurate order for you in the market right away.
TxFlow is the world’s fastest blockchain indexing engine. With TxFlow, SLAMM can detect the change in the price of any token on our supported chain faster than anyone else. This means we can decide which Limit Order/Stop-Limit to be executed and respond to the market faster than anyone. And with our Best Rate Engine, the signal from TxFlow will trigger our Best Rate Engine to execute orders for our users. The Best Rate Engine monitors the state of many DEXes and finds the best price for that particular order.
With these 2 technologies combined, we believe we have created the best Limit Order & Stop-Limit for DEX.
Moreover, we do not collect fees if the transaction is not successfully executed. Users will receive a full amount of funds back, no fees collected. But please be noted that this is excluded from gas fees.

Mechanics Behind SLAMM

For the Beta version, not all stablecoins are eligible for using SLAMM. As for the other side of the transaction, users can select any tokens. However, please be noted that Arken’s Stop-Limit for AMM is not recommended for tokens with tax. Due to our product execution method shown above, several hops of funds will be made during the execution, which may result in paying several times the token tax.
We have compiled a list of stablecoins that are suitable below:
  • USDT
  • USDC
  • DAI
  • BUSD

Important Notice

Please Do Your Own Research. Understanding the differences between the features is highly recommended before any attempt in usage.
Arken’s Stop-Limit for AMM is not recommended for tokens with tax. Due to our product execution method, several hops of funds will be made during the execution, which may result in paying several times the token tax.
Currently, Arken's SLAMM is available on BNB Chain only. However, we are expanding the feature to other networks too.
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Outline
Introducing Arken Finance’s Stop-Limit for AMM (SLAMM)
What is a Limit Order?
What is a Stop Limit Order for AMM?
How Are We Different?
Mechanics Behind SLAMM
Important Notice