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Symphony Finance
Both centralized exchanges and decentralized exchanges have limit orders worth billions of USD in daily volume. This makes limit orders one of the most utilized and lucrative crypto financial instruments today. Symphony Finance wants to disrupt the decentralized finance trading market with smart and innovative protocols. We want to be the go-to trading DEX in DeFi for all types of Web3 users ranging from joe to pro traders with different risk profiles.

Current Problems

Crypto trading instruments have improved a lot in the previous decade, with new crypto products and derivatives that provide leverage and exchanges like Binance which provide a great trading experience. But when we compare DEXes with TradFi exchanges and even CEXes like Binance then there is still a lot of scope for innovation and improvements:
  • Most of the DEXes don’t provide the basic feature of “stop-loss” trades. Stop-loss is one of the most utilized tools in TradFi. One can’t think of trading without stop-loss in TradFi or CeFi. This feature is not yet available in many order book DEXes in DeFi today.
  • Another problem with limit orders that is also applicable to TradFi is that the assets are not utilized for the time the limit order is left open on the order book. This makes limit orders capital inefficient. This problem is still prevalent in crypto CEXes and DEXes.
  • Apart from that most of the CEXes in crypto have liquidity silos. There are often price discrepancies between different CEXes and DEXes. As a result of this, users don’t often get the best prices for their crypto assets. However, this problem is addressed to some extent with DEX aggregators.
  • Crypto CEXes have strong trust assumptions. This is against the ethos of web3 like trust-less security. We’ve seen significant down-time on most of the popular CEXes which often results in a loss for the users.
  • Yield protocols and aggregators optimize yield but fail to maximize profits in the case of volatile assets. For eg: the value of ETH might drop while it is earning yield.

Better Alternative

The above problems can be solved with Smart Limit Orders, Stop-loss, and Market orders. With all these features in a single place, Symphony Finance’s YOLO can become the go-to trading DEX for all types of Web3 users ranging from joe to pro traders with different risk profiles. Symphony’s Yield Optimized Limit Order (YOLO) is a yield generating limit order protocol. YOLO helps users maximize profits and yield hence improving capital efficiency as compared to the existing standard limit orders.
  • YOLO optimizes the yield on limit orders by integrating with protocols like Aave, Compound, Yearn, etc.
  • Apart from yield generation, YOLO has other great features like “Liquidity Aggregation”, which benefits the users by filling their limit orders at the best price.
  • Stop loss is another feature that YOLO provides.
  • Anyone running an executor service to execute the YOLO orders will be incentivized to host their own UI too, which makes YOLO’s UI decentralized. This would ultimately help eliminate UI downtime.
  • YOLO also guarantees the orders get executed once the prices are there in the market by eliminating the need for “Takers”. In the context of YOLO, the integrated DEXes act as Takers. Most CEXes and DEXes don’t offer order execution guarantees due to the lack of liquidity or on-chain smart contract gas races but with YOLO the liquidity can be aggregated across the network and provide stronger order execution guarantees.

Use-cases

  • Users can maximize profits and yield at the same time.
  • Other DEXes can integrate with Symphony’s Yolo to provide limit & stop-loss functionality to their users.
  • DAOs can use YOLO to diversify their treasuries.