Bogged Finance, a Decentralized Finance project aiming to bring traditional trading tools to decentralized crypto exchanges, has expanded its trading suite to the Avalanche blockchain, according to their recent Medium blog post.
This means that DeFi traders will be able to use a familiar set of tools, such as Limit Orders and Stop-Losses, when trading cryptocurrencies on Avalanche DEXes (Decentralised Exchanges).
What is DeFi trading, and why do traders want limit orders on it?
Decentralized exchange trading has been popularised in the last couple of years as an alternative to trading on traditional centralized exchanges. Proponents of DEXes claim that they are more transparent and secure, as all trading takes place on the blockchain, a publicly verifiable way of proving asset ownership. This is unlike centralized trading, where users have no ownership of assets until they are withdrawn from the exchange.
However, decentralized trading is in its infancy, meaning that features taken for granted on centralized exchanges have been missing for some time in DeFi. Bogged Finance is aiming to solve this problem, much to the delight of traders.
Typically, decentralized trades involve “swapping” tokens, which is essentially a market order at whatever price the decentralized market maker returns. This can be fine for some traders, but many who have come from traditional trading may prefer to use limit orders to exert more control over their trades.
How do DeFi limit orders and stop-losses on Bogged Finance work?
A limit order allows trader to buy or sell an asset at their expected price, once the asset reaches that price. A major convenience with limit orders is that they are automatically filled by the trading platform, without constant monitoring needed on the trader’s part.
The decentralized solution offered by Bogged Finance works exactly like this, and the feature has been well received so far by traders on the Binance-operated BSC blockchain; within two weeks of launch over $1m worth of DeFi limit orders were placed, according to a recent EOY report from Bogged Finance. To date, over 100,000 orders have been placed on Binance Smart Chain.
Stop-losses are another important tool, helping traders to protect themselves from losses in the event of market crashes. According to Bogged Finance, they offer standard stop-losses as well as trailing stop-losses, which can help traders exit positions at a higher price point.
Bogged Finance also offers a charting service called BogCharts which can be used to track historic price data, similar to many centralized trading platforms.
These tools work on a large number of decentralized exchanges, including PancakeSwap and Trader Joe.
Tokenization of payments – the future of paying for services
An interesting aspect of Bogged Finance’s operation is how users pay for using the platform. Following the lead of many other DeFi projects, Bogged Finance uses what is called a governance token. BOG token can be purchased by users through BogSwap, and is used to pay for tool usage, and for participation in voting and staking programs offered by BogTools.
According to a recent press release Bogged Finance also uses this token to bridge funds between different blockchains, meaning users can effortlessly trade on whatever chain they please, using Bogged Finance as a link.
As DeFi trading surges in popularity, there will be a serious demand for user-friendly trading tools, and Bogged Finance definitely appears to be at the forefront of services able to supply this.
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