With total value locked (TVL) of $50B+ on Ethereum and $25B+ on Binance Smart Chain (BSC) as of 13th April 2021, it will be an massive understatement to say that Decentralized Finance (DeFi) is growing.
DeFi is EXPLODING!
Automated Market Makers (AMMs) like Uniswap, PancakeSwap, etc. have built great protocols for anyone to list and swap tokens. Its much easier provide liquidity to these Decentralized Exchanges (DEXs). $10B+ of liquidity is locked on these platforms and have a daily trading volume of $2B+. We are redefining DeFi trading to make this $2B volume be less stress-full and awesomely rewarding!
How do you currently trade on AMMs?
1) Select Source & Destination token
2) Swap Source to Destination token by paying protocol fee + gas fee.
Super simple, actually a little too simple for advanced users.
Now, consider this case
Your analysis says to buy 200 BUSD worth of CAKE tokens @ 20 BUSD per CAKE
How do you go about it?
- Set Price Alerts on CoinMarketCap, CoinGecko, Blockfolio, etc.
- Once your alert is triggered, you go to PancakeSwap and swap your 200 BUSD to CAKE at market rate.
- Due to huge price fluctuation, this order execution can be delayed and is prone to cost high slippage.
- Also, due to manual nature of these actions, maybe you are not available (sleep, travel etc) to execute the order at the alert trigger time.
Why can’t limit orders be rewarding?
$50B+ of daily trading volume happens on centralized exchanges and $3B+ volume happens on DeFi protocols.
Considering 20% of above orders to be limit orders i.e $10B+ of trading volume is sitting idly locked on various platforms.
Limit orders can be super rewarding but existing platforms don’t offer any options.
Octane Finance to the rescue!
Octane Finance brings the best of limit orders making them more smart and rewarding with the added benefits of DeFi.
What is a Limit Order?
A limit order is an order to buy or sell an asset at a specific price (limit price) or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.
How we are redefining Limit Orders?
You place a limit order to buy 200 CAKE when CAKE reaches 20 BUSD or less.
- Protocol Magic
Protocol takes over and generates interest before and after your order on the order tokens from open and proven DeFi yield protocols. All parameters related to order are user customisable.
When market price is near your limit price and other conditions are fulfilled, the platform takes out your tokens from the yield protocols and fills your limit order. This is achieved via network of highly incentivized executors who look after your limit orders.
Lets walk through this simple example
- Consider user places a limit order on Octane to buy 500 CAKE with 10,000 BUSD when CAKE reaches $20. User supplies 10,000 BUSD for this order. Suppose CAKE price is currently $25.
- Octane then takes the order value of 10,000 BUSD and stakes it in Venus vault for ~10% APY.
- When CAKE reaches a price of $20.5 the limit order is placed in a pending pool for it to be executed. A network of highly incentivized executors keep a watch over this pool.
- Executors execute this order at 20$ per CAKE by paying the respective gas cost of the transaction. In return, they get OCTANE tokens collected from the user as the transaction fee for this order.
- Suppose CAKE reaches $20 in 3 months.This means it took 3 month for the order to be executed. Hence, the interest generated on order ~10000*(10%/365)*90 = $246. This $246 interest is given back to the user in the form of OCTANE tokens. So the user gets 500 CAKE + $246 worth of OCTANE tokens.
- Know this, received tokens CAKE and OCTANE are again staked to Venus to give maximum returns until user withdraws.
OCTANE Token is the integral part of our platform. It is a deflationary utility and governance token.
- Interest generated by yield APY on limit orders will be distributed in OCTANE tokens.
- Platform fees will be distributed in OCTANE token to incentivize order executors.
More details on OCTANE tokenomics will be released soon
Why Binance Smart Chain (BSC)?
TVL on BSC DeFi has reached 60% of Ethereum within 2 months of launch. Lots of genuine interest and activity on it has prompted the arrival of new, innovative and promising DeFi protocols. With less congestion issues and cost efficient fees, we feel it is the best blockchain for our launch.