Octane Finance is redefining limit orders by making them smart & rewarding. We follow the optimal capital path for idle limit orders.
Our long-term vision is to become a highly capital efficient & rewarding trading platform built upon open-source protocols.
What are limit orders?
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 are we making limit orders rewarding?
Octane leverages existing DeFi lending/yield protocols to generate the best APY on pending limit order assets.
How does it work?
Consider this scenario
Buy 500 CAKE with 10,000 BUSD when CAKE’s price is $20.
User supplies 10,000 BUSD for this order. Suppose CAKE’s price is $25 at the time of order placement.
Octane smart contract then takes the order value 10,000 BUSD and sends it to Venus vault for, let's say ~10% APY.
A decentralized network of highly incentivized executors keeps a watch over the pending order pool and executes the order based on the limit conditions.
So, executors execute this order at 20$ per CAKE or less 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 months for the order to be executed. Hence, the interest generated on order ~10000*(10%/365)*90 = $246. This $246 interest after any protocol fees 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 CAKE tokens are again sent to Venus to give maximum returns until the user withdraws.