Introducing Limit Orders on Pangolin

Published in

Pangolin Exchange

4 min readFeb 9, 2022

You can now trade with limit orders on Pangolin V2. Layer into your trades with ladder orders, safely swap stable coins, and yield stablecoin arbitrage.

Starting today, Pangolin is the first Avalanche-native DEX that will allow you to set limit orders for any token on the platform. With the official rollout of our V2 UI, you can seamlessly integrate new strategies to increase yield, maximize your profits, and minimize your losses.

What are limit orders?

A limit order is an order to buy or sell a token at a specific 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 to set a limit order:

Toggle to “limit”
Choose which currencies to swap
Set the price you want to sell at
Place order

Once you place your order, it will populate in the limit orders section. Here you can track its progress and cancel if necessary. There are some fees involved. Notably, if there is increased volatility and gas prices are high, the Gelato bots that fill your order will cover the cost and charge a small fee. Also, if you need to cancel an order, you will be charged gas fees.

Ladder Strategy

The ladder strategy is when you buy or sell a token incrementally rather than trading at a single price. It is a simple way to limit losses during market fluctuations by spreading into and out of your positions.

Many CEXs, and some DEXs, allow limit orders on a few established projects, such as PNG or AVAX, but not for new tokens. For many traders on Avalanche, this is a pain point that means staring at charts all day if you want to make smart trades on new and exciting projects.

We don’t find this convenient, so we’ve built a product that you can use for any listing on Pangolin to ensure you get the most out of your trades.

Here’s a simple example of laddering into buy limit order:

Stablecoin Swapping and Arbitrage

Limit orders allow you to swap stablecoins safely. Stables are pegged to $1 but can have slight fluctuations in their prices. For example, there could be $1.008 USDC.e and $1.00 USDC. You can set a limit order for exactly $1.00, and it will fill when USDC.e is back at $1.00.

There’s also the opportunity to arbitrage between different stablecoins using limit orders. Arbitraging between stables means taking advantage of these temporary differences between the coin’s pegged value of $1 and the quoted price.

To do this, you would set a sell limit order on your stable at a higher price than it’s pegged. The result is a quick profit just by clicking a few buttons. Arbitrage is highly competitive and most profitable with larger trades.

*Slippage on limit orders is set to 0.4% and cannot be changed. We cannot guarantee your order will get executed so exercise caution when abritraging.*

Limit-less Opportunities

Keep your eyes peeled as we release new updates from our Q1 2022 roadmap. We’re building the future of decentralized finance, and we’re giving you the tools to come with us.

Comment below with your thoughts and questions on limit orders. And don’t forget to share this post and join Discord and Telegram to be a part of the future of Pangolin.

About Pangolin Exchange

Pangolin Exchange is a top decentralized exchange (DEX) on the Avalanche Network that provides the best DEX experience through deep liquidity, easy swaps, advanced tooling, and smooth onboarding. Pangolin brings you the best trading opportunities to find and maximize your yield.