Spot Price Queues

What are Liquidity Queues?

These queues are designed for market makers (liquidity providers) seeking to exit positions without slippage at spot-market prices. Market makers will be able to place their liquidity on a specific queue (i.e. BNB > USDT) and be protected from any impermanent loss since they only provide a single asset.

Spot Price Queues

The Spot Price Queues will enable trades to occur at spot-market prices obtained from decentralized oracles. The queue uses a secure adaptor protocol that guards against many of the shortcomings of using oracles. The protocol includes a series of customizable circuit breakers that ensure that liquidity providers are protected against front-running or recent security exploits as trades that fail any of the circuit breakers will not be carried out.

Benefits of Spot Price Queues

Spot price queues offer traders seeking an alternative to OTC desks as a way to exit a position or buy into a position without slippage at the spot market price on-chain. Additionally, market makers will gain a portion of the transaction fee that is paid by the market taker on the swaps.

How Do Spot Price Queues Work?

Spot Price Queues are designed for token pairs that have a well-established off-chain spot market price provided by oracles. Instead of using the oracles directly, OpenSwap has created a secure adaptor protocol to leverage oracle pricing in a controlled manner providing traders with the security of layered circuit breakers that guard against sudden price fluctuations, front-running, and compromised smart contracts.
The following diagram shows how it works:
Sample circuit breakers are:
    Security Score: A trade-time check will be made to verify that the adaptor’s score on the “Certik Shield” program has not changed to ensure that there have been no security vulnerabilities identified on the smart contract.
    Trade Value: Individual trades will be capped at a certain value (i.e. $10,000).
    Secondary pricing variance: An additional reference price will be obtained from either another oracle source or exchange. If the oracle price exceeds a certain threshold (i.e. 1%) then the circuit breaker will not enable the trade.
The secure adaptor protocol enables an unlimited number of circuit breakers to be added, and it is also possible to design circuit breakers leveraging data passed from the DApp.
The OpenSwap platform was designed so that new Adaptors can be voted into place to support new token pairs and to support new strategies for providing the spot price trades.

Spot Price Queue Sub-Types

We have currently designed 2 sub-types of spot-price queues:

1.) Spot Priority Queues

Spot priority queues are designed for traders seeking to exit out of a position quickly, and at the spot market price. Priority can be achieved through staking a quantity of $OSWAP tokens. The order with the highest amount of $OSWAP tokens staked will be sold first. Traders can also set an 'expiry' date for their orders so that no more will be sold after a certain time if not already sold. Check out our videos below on using our Spot Priority Queue feature.
Joining a Spot Priority Queue
Adding Liquidity to Spot Priority Queue

2.) Spot Range Queues

Spot range queues will provide the ability for liquidity providers to set price brackets, on which to make their liquidity available for sale. Trading DApps tapping into the liquidity queues can initiate trades using the liquidity as long as the market price is within the range set by the liquidity provider. The transaction price will be based on the existing spot market price.
In both types, liquidity providers joining the queues have the option of canceling or withdrawing their liquidity as long as it hasn't been swapped against yet.

Wish to learn more about the OpenSwap platform?

To interact with the OpenSwap platform, please explore the following link: https://www.openswap.xyz/
We encourage community members to partake in community discussions to help better shape OpenSwap's platform. Users may get in touch with core team members through joining the OpenSwap telegram group: https://t.me/openswapdex
Last modified 2mo ago