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?
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.