The team at OAK Network are excited to highlight the new functionality that ourĀ Price Trigger AutomationĀ features are bringing to the DeFi ecosystem. In the following article we will discuss some of the use cases for our cutting-edgeĀ Price AutomationĀ features including limit orders, decentralized trustless auto-trading, liquidation protection and cross-chain arbitrage.
Introduction
OAK Networkās recent integration with Astar and the Arthswap exchange is enabling developers, builders, traders, and users to benefit from OAK Networks latest Price Automation features. The new Price Triggers and Price Automation allows anyone to schedule a future blockchain transaction to occur when the price of an asset (or multiple assets) reaches a specific point using cross-chain messaging to our Turing parachain. This feature provides a variety of benefits and functionality including:
- Placing decentralized limit and stop-loss orders completely non-custodially.
- Advanced liquidation prevention and protection.
- Automatically executed cross chain arbitration opportunities.
- Enhanced security and convenience for traders.
Price triggers & price automation play a critical role in establishing OAK Network as the payments and finance infrastructure hub for the Web 3.0 and our team is proud of the progress we have made on delivering such an important product that has been requested by users within the ecosystem. The delivery of an effective price trigger has been a significant event and feature on our teamās roadmap and its completion marks an important milestone for OAK Network and our community of supporters and builders.
For a demonstration of how Price Automation and OAK Network can be used to complete limit orders on the Arthswap exchange you can check out the video below. If you want to learn what limit orders are and how price automation enables them, we go into further detail about them in the use cases section of this article. We have also included a link to our technical documentation in-case you want to build with OAK.
If you are a trader or user on Arthswap or another decentralized exchange and are interested in using Price Automation features for yourself, our team at OAK have an All-In-One Automation Hub that is in the final stages of development and is planned for release shortly. Be sure to follow our socials and join our Discord community to stay up to date with our announcements.
https://avaprotocol.org/docs/
Price Automation Use Cases
The ability for a blockchain to trust-freely trigger an action when a price reaches a specified threshold creates a variety of different complex use-cases and opportunities for development across the DeFi ecosystem. While we are highlighting three of the use-cases that users can benefit from right now, price automation can be used to create far more innovative features in the future. If you are a developer and are interested in using price automation within your project make sure you check out our resources page on our website and join our community discord to get in touch.
Limit Orders
What are limit orders? Limit orders are an order to purchase or sell a token at a specific price condition. For example, a user could place a limit sell order to automatically sell 100 DOT tokens once the price of DOT reaches 50 USD. Additionally, a limit buy order could be used to purchase 100 DOT once the price of DOT reaches 10 USD or even a series of limit buy orders could be created to purchase 10 DOT every time the price of DOT raises by 10 dollars. While limit orders can seem simple, to complete them in a fully decentralized and secure manner without ever taking custody of any assets remains complex.
OAKās price automation features create the first of its kind functionality by harnessing the power of XCM v3 receivers and senders to bring limit buys/sells to Astar and Arthswap. Our team is also excited to explore the use of our Price Automation Pallet to offer limit swaps on other exchanges within the ecosystem ā make sure to follow our social media and join our Discord to stay up to date for any new partnership announcements.
Liquidation Prevention and Protection
How does liquidation protection work? Price automation is a highly effective tool for risk management and protecting against liquidation when doing leveraged trading. Liquidations occur when a trader cannot fulfill the margin requirements of a leveraged position, generally in circumstances of significant price change. OAKās price automation can prevent and protect from liquidations with two different types of solutions. Firstly, OAKās new limit orders can be used as stop-loss orders for protection from liquidations which can also include multi-asset price data. The functionality to trigger a stop-loss limit sell of one asset when there is a significant price change in another asset is just one example of the type of functionality that OAK is creating.
The second feature for liquidation prevention is using the Price Automation to automatically re-collateralize the margin requirements of a leveraged position if the token price changes to prevent any liquidations. This is a feature that our community has shown a lot of interest in and we are happy to be helping any users from being liquidated!
Multi-Asset Price Automation
What is multi-asset price automation? Multi asset price automation lets users trigger on-chain orders including limit buys and sells based on price data of multiple assets. This feature is especially useful when trading assets that are heavily correlated. For example, the multi-asset price automation functionality could be used to trigger a market sell of DOT if the price of BTC reaches a specific value. Additionally multi-asset price automation can be used to compare the price data of two assets and execute a limit order if a condition is set, this creates a wide range of opportunities for developers and users.
The ability to compare and trigger on-chain executions from the data of different asset prices is also being expanded to other data streams such as fiat currency prices, commodity prices and more.
Cross-Chain Arbitrage
What is cross-chain arbitrage trading? Traditional arbitrage trading is the process of simultaneously buying and selling of the same asset across different markets to benefit from any differences in price across each market. Cross-chain arbitrage traders complete this by simultaneously buying tokens across different blockchains and ecosystems. By using price automation triggers from OAK arbitrage can be executed at the exact price that the trader is looking for.
Future Improvements
As our team and our community creates even greater and more complex functionality for OAKās non-custodial price automation we are also committed to continuously growing and improving the features. We currently have a series of future improvements planned including real-time notifications and task tracking. You can find more information about future improvements below and if you want to suggest a feature for our team to add please head to our community Discord.
Email and Telegram Notifications
To keep our users informed and engaged, we plan to introduce email and Telegram notifications. These notifications will provide timely updates on critical events, such as task executions, price movements, and important announcements. Our goal is to ensure that users stay well-informed and can take prompt action when necessary.
Past Task History
Building on the power of OAKās data insights API, we are developing a feature that will enable users to access and explore their past task history. This historical data will be presented in a simplified and user-friendly format, making it easy for users to track and analyze their on-chain activities over time. This valuable resource will empower users with insights to make more informed decisions.
EVM Pre-compiled Interface
Astar team has created an EVM (Ethereum Virtual Machine) pre-compiled interface and we plan to adopt the technology in the next version. This interface will empower users to seamlessly execute extrinsics via popular tools like Metamask, further expanding the reach of our platform.
Enhanced Fee Explanation
We are committed to transparency, and as part of our ongoing efforts, we will provide more detailed fee breakdowns. This will include a comprehensive explanation of all fees involved in transactions, including send fees, schedule fees, execution fees, and any other associated costs. Our aim is to ensure users have a clear understanding of the financial aspects of their transactions, all denominated in native tokens.
About Ava Protocol
Ava Protocol is an intent-based Eigenlayer AVS that seamlessly enables private autonomous transactions for numerous use cases, such as DeFi, NFTs, and games. We're enhancing decentralized applications with scheduled and recurring payments, stop-loss orders, streaming rewards, and more. Ava Protocolās event-driven execution model triggers cross-chain transactions based on signals such as time, price changes, and smart contract updates. Developers can easily schedule and automate functions across different blockchains, including Ethereum, ensuring efficient and reliable execution without compromising privacy.
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