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over 1 year ago

🔔How do limit orders work in #1inch Limit Order Protocol? ✔️While previously users could only exchange tokens at the market price, more flexible solutions are now in demand, such as limit #orders. ✔️One of the leading protocols in this area is 1inch #LimitOrderProtocol, which offers advanced features, low fees, and a high level of security. ✔️1inch Limit Order Protocol is a decentralized protocol for placing and executing limit orders on #Ethereum networks and compatible blockchains. ✔️Unlike traditional market exchange, it allows the user to specify the desired price and volume of the #transaction, and the order will be executed only when the required conditions are met. ❕How does the protocol work? 🟠Creating an order outside the blockchain. The user creates a limit order in the form of structured data: the #token, volume, desired price, and additional conditions are indicated. Then the order is signed with the user's private key. 🟠Publishing the order. A signed order can be placed on any source: in the #1inch UI, in a bot, via API, or directly sent to other users. However, the order itself is not published in the blockchain. 🟠Order execution. When suitable conditions are found, the order is executed through interaction with the 1inch smart contract. Someone (for example, an arbitrage bot, another user, or even the trader himself) submits an order to the contract with a signature, and the contract checks its #validity and compliance with the conditions. ❕Key features of the protocol: 🟠Order creation without gas. Since the order is created and signed outside the blockchain, the user does not spend gas until the moment of execution. 🟠Flexible execution conditions. You can set not only the price and volume, but also more complex conditions - for example, by time, the cost of an external asset, the presence of certain tokens, etc. This is implemented through the predicate logic mechanism. 🟠Request-for-Quote (RFQ) support. The protocol can be used to implement fast #OTC transactions, when the market maker provides a quote, and the user agrees to it. 🟠Modularity and extensibility. The protocol is built on lightweight, independent contracts that can be easily adapted to the needs of other platforms and projects. 🟠High gas efficiency. When executing orders, a minimum number of operations are used, which makes them cheaper compared to other solutions. ❕Where can 1inch Limit Order Protocol be used? 🟠1inch Wallet: users can place limit orders directly in the wallet. 🟠DEX aggregators: used to execute complex routes and save on exchanges. 🟠OTC deals and private deals: you can conclude deals directly between two parties. 🟠NFT markets and games: applicable for orders to buy/sell #NFT and game assets. 🟠Bots and arbitrage: especially popular among traders building automated strategies. If you work in the #DeFi space, trade tokens, or build a dApp, this protocol is worth considering as the basis for your infrastructure. https://t.co/rZ4W645pj1