ParaSwap announces the integration of Chainlink Keepers and launches limit order functionality
This will allow users to set trades to execute only when a specific price point is reached.Source: ParaSwap Blog
Compiled by: Hu Tao, Chain Catcher
Today, the DEX aggregator Paraswap announced the integration of Chainlink Keepers on Ethereum to bring limit order functionality to its DEX aggregator protocol, allowing users to set trades that execute only when specific price points are reached, such as selling 10 ETH only when ETH drops below $2000, or buying 10 ETH only when ETH rises above $2200.
It is understood that Chainlink Keepers use decentralized and provably reliable off-chain computation to monitor user-defined conditions and then call on-chain functions once the conditions are met. ParaSwap will leverage Chainlink Keepers to trigger the execution of user limit orders when asset prices exceed predetermined price points.
"This will enable traders to better manage their portfolios and hedge against volatility without manual intervention, ultimately helping them sleep better at night," Paraswap stated.
In the past, integrating limit order functionality on DEXs has been challenging because it requires off-chain monitoring of conditions, and once conditions are met, timely relaying and verification on-chain is necessary. This infrastructure is crucial because on-chain monitoring is costly, untimely trades can lead to slippage and missed opportunities, and a lack of on-chain verification introduces new trust assumptions that may be detrimental to users.
Chainlink Keepers provide a decentralized solution that is cost-effective, reliable, and supports the same security assurances as the blockchain. Chainlink Keepers will be used to monitor users' off-chain limit orders based on global asset prices and execute them on-chain in a verifiable manner once specific price points are reached. Currently, several projects, including EthSign, BarnBridge, and B.Protocol, are expected to announce the integration of Chainlink Keepers.
Previously, 1inch has had limit order functionality live for several months, and last month Sushiswap also launched limit order functionality on its Polygon version, with plans to roll out this feature on the Ethereum mainnet thereafter.
