The L3 project Orbs announces the launch of a decentralized stop loss protocol dSLTP for DEX.

Layer-3 (L3) Blockchain Orbs announced the launch of the first decentralized stop loss order protocol dSLTP aimed at DEX, allowing DEX users to execute stop loss and take profit orders on-chain without relying on centralized intermediaries.

dSLTP is built on the Orbs infrastructure, dedicated to providing reliable, robust, and efficient stop loss and take profit execution for decentralized trading, while ensuring security and decentralization features. dSLTP joins dLIMIT and dTWAP in the Orbs advanced trading order suite, expanding DeFi capabilities with CeFi-level trading functionality.

It is understood that stop loss orders are key tools for strategic trading and risk management. They can help traders: limit potential downside risks and protect portfolios through stop loss orders; automatically lock in target profits and ensure gains through take profit orders; and execute orders automatically without the need for continuous market monitoring.

dSLTP supports both market stop loss orders and limit stop loss orders, allowing users to set configurations that best meet their needs. Market stop loss orders ensure that a user's order is executed immediately after the stop loss price is triggered. However, in fast or highly volatile markets, slippage may occur, resulting in the actual execution price being much lower than the trigger price. This means that the actual amount of tokens received may be less than expected.

A limit stop loss order can prevent the execution price from falling below the set limit price. Once the stop loss price is triggered, the order will only be executed at the limit price or a better price. The downside is that if the market price falls below the limit price set by the user, the order may not be executed at all. (crypto.news)