Smart Wallet is our proprietary set of smart contracts that powers the backbone of our advanced order system. This brings us closer to feature parity with tools available across existing centralized exchanges, allowing for advanced strategies and improved risk management. Stop-loss orders help to protect traders from losing more money than they are willing to risk, while limit orders allow traders to set an optimal price they are willing to accept for a trade.

Smart Wallet is a unique DexToro offering that allows users to trade any Synthetix perp market from a single pool of margin. By default, all Synthetix futures contracts are isolated markets, requiring users to deposit and withdraw separately for each asset they wish to trade. With Smart Wallets, users can seamlessly trade different markets with fewer transactions, lower fees, and less hassle.

Gelato Keepers

Keepers can do things like execute limit orders, liquidate under-collateralized positions, and just about anything on-chain autonomously.

Making use of Gelatos keepers, DexToro allows users to place orders which are executed automatically when future conditions are met. This allows DexToro to offer stop loss and limit orders. Users submit an advanced order type, where Gelato keepers monitor and execute the order when the conditions are met. No more manual intervention is needed from traders on DexToro to execute orders once an advanced order is set.

In order to execute on-chain advanced orders, traders will need to have .01 ETH deposited for their margin accounts keeper. This will be done automatically when you place an advanced order. This balance will continuously be returned to a .01 ETH anytime a new advanced order is placed and the balance is below .01.

What are Limit Orders?

Limit orders offer traders freedom & peace of mind when it comes to how they trade. They allow you to set the price at which you are willing to buy or sell an asset rather than taking the current market price. This can be helpful when you are looking to buy an asset below its market price if intentions are to go long or sell an asset above its market price if intentions are to go short.

Limit orders are a great way to avoid buying or selling too early or too late or having to be at your screen all day to trade. DexToro limit orders will execute when the Oracle price reaches at or below a specified price when going long or above or at a specified price when going short.

Note: Currently, all advanced orders are triggered against the Chainlink price, which may differ from the displayed Pyth Oracle Index or adjusted Skew Price (DexToro Price).

Limit Order Example

ETH-USD is currently trading at $2,000

Vitalik thinks there’s a chance that the price of ETH-USD will get to $1,500. Due to this possibility, Vitalik places a limit order to buy ETH-USD at $1,500. Once the Oracle price drops to or below $1,500, the limit order triggers and a market order is executed. This means Vitalik gets to buy ETH-USD for $1,500 instead of $2,000.

Several limit orders can be submitted per asset per contract at any time.

Limit orders can also be used to close out positions. After entering a long position at $1,500, Vitalik thinks the price of ETH-USD will reach $5,000. In anticipation of this, Vitalik opens a limit order to sell or close the trade at $5,000. Once the Oracle price goes above the $5,000 price point, the limit order will trigger a market order, locking in profits without having to monitor the Market or manually close the trade.

What are Stop-Loss Orders?

Stop-loss orders offer traders the opportunity to protect themselves from significant losses. When setting a stop-loss order, you set the price at which you want to exit a position. If the market value of the asset falls below (when long) or above (when short) this price, the order will be executed, and the trader will be able to sell the asset at the set price.

In order to remain profitable, traders need to be able to manage risk. Stop losses help traders achieve this by automatically closing unprofitable positions and cutting losses before they deplete all available margin. This order type can also protect already achieved profit by setting a stop-market order above an entry price.

Stop-Market orders can also be used to enter positions in the Market above or below a price point, depending on the direction of the trade.

Cutting Losses: Stop-Market Example

Vitalik is long 1 ETH with an average entry price of $1,500. Vitalik anticipates that the Market will remain on an upward trajectory as long as the $1,500 price holds.

To manage your risk and prevent the position from losing more than $200, Vitalik sets a stop loss at $1,300. Vitalik can rest easy knowing the maximum loss he will be exposed to is $200, regardless if he was actively monitoring his trade or not.

Entering a Position: Stop-Market Example

Using the above example, Vitalik also thinks that if ETH-USD breaks above the $1,800 price market will continue to trend. Vitalik can now place a stop market order at $1,800 to ensure a market buy occurs once the price reaches above the $1,800 point.

Stop-Market orders are dual-purpose and can be used to exit profitable or unprofitable positions at a specific price point or open new positions once a price barrier has been breached.

What’s Next?

Smart Wallet contracts enable traders to take advantage of opportunities in the Market by opening new order types, stop-market, and limit orders. This gives them the control they need while also limiting their exposure to potential losses. By matching the features of centralized exchanges, DexToro is moving closer to its goal of providing a comparable trading experience, all while being 100% decentralized, allowing traders to have self-custody of their funds. Moving forward, DexToro will focus on Delegative Trading, deeper integrations offering more advanced tooling for other DexToro offerings, best-in-class audited staking contracts, Copy Trading or Social Trading, and more.

About DexToro

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