Bogged Finance, a DeFi ecosystem that brings traditional trading tools to decentralized crypto exchanges, has expanded its trading suite to the Avalanche blockchain.
This means that DeFi traders will now start using a familiar set of tools, such as Limit Orders and Stop-Losses, when trading crypto on Avalanche DEX-es (Decentralised Exchanges).
What is DeFi trading and why traders need limit orders?
Decentralized exchange trading has been popularised in the last couple of years as an alternative to trading on centralized platforms like Binance or Huobi. Proponents of DEX-es say 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 This is unlike centralized trading, where users have no ownership of assets until they are withdrawn from the exchange.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 investors, but many who have come from traditional trading may prefer to use limit buy or sell orders to gain more control over their trades.
How do DeFi limit orders and stop-losses on Avalanche work?
A limit order allows a 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. The BOG token can be purchased by users through BogSwap, and is used to pay for the Dapps usage, and for participation in voting and staking programs offered by Bogged Finance.
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 becomes more and more popular, there will be a serious demand for user-friendly trading tools. Bogged Finance definitely appears to be at the forefront of services able to supply this.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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