Spot Trading

1. Spot trading on Deriverse: how it works

Deriverse combines an AMM and traditional orderbook. This hybrid approach eliminates significant pitfalls and allows traders to use the best aspects of each system at the right moment.

Problems with AMMs (Automated Market Makers)

• Slippage: In AMMs, large trades can drastically change the price because the liquidity pool adjusts based on a formula.

• No precise order control: You can't set specific buy/sell prices like you would in an order book.

• Liquidity issues: If a pool is small, even moderate trades can move the price significantly.

Problems with Order Books

• Low liquidity: In DeFi, order books often have low liquidity, meaning large trades may not get fully filled at a single price.

• Longer execution times: If there's no one matching your trade, you might have to wait or adjust your order.

Combining the Best of Both

• When liquidity is available in the AMM at a good price, your trade executes there.

• If the AMM price moves too far from the order book price, the system switches to the order book for better execution.

• This minimizes slippage, provides more liquidity, and ensures you get the most competitive price.

By blending both models, traders get better execution, lower slippage, and more efficient trading overall—essentially avoiding the weaknesses of each system.

4. Viewing & Canceling Open Orders

Spot traders can monitor and manage their open orders in real time by viewing order details and canceling active orders when needed.

Steps to View & Cancel an Open Order

1. Navigate to the Open Orders section.

2. View details for each order, including: Order status, Price, Quantity etc.

3. Click the Cancel button on an active order.

4. Sign the cancel transaction in your wallet.

5. Upon confirmation, the order is removed from the Open Orders list.

5. Mass Cancel Open Orders

For traders managing multiple orders, mass cancellation allows for efficient position management by removing all open orders at once.

Steps to Mass Cancel Open Orders

1. Navigate to the Open Orders section.

2. View details of all open orders, including: Order status, Price, Quantity, Timestamp.

3. Click the Mass Cancel button to remove all active orders.

4. Sign the cancel transaction in your wallet.

5. Upon confirmation, all selected orders are removed from the Open Orders list.

By following these steps, traders can efficiently manage their spot trading activities on Deriverse.