We would like to announce that the limit order instrument on TomoChain is scheduled to go live at 8:00 AM (UTC), June 10th.
In the traditional order book model, you can see a list of outstanding buy and sell orders. The AMM model in general including LuaSwap automatically adjusts the price of the tokens using the pool model without an order book. The advantage of this model is more liquidity and lower slippage. The downside is more slippage for larger orders. Additionally, each pool needs to have enough liquidity to support a decent volume of trades. LuaSwap solves this critical issue by supporting limit orders on TomoChain platform with a small fee and super fast confirmation time. We would like to announce that the limit order instrument on TomoChain is scheduled to go live at 8:00 AM (UTC), June 10th.
A market order is an order to buy or sell a token with the best available price in the current market. This is the default order type on AMMs and LuaSwap right now, it is the quickest way to execute your trade and your token will be swapped immediately. A limit order is an order to buy or sell a token at a specific price.
Since LuaSwap is an AMM with pool model, limit orders will work in a different way compared with normal order book exchange. It consists of two main parts: orderbook and settlement. The orderbook records limit orders from users, and settlement helps to execute these orders by swapping them.
To create a limit order on LuaSwap, perform the following steps:
- Go to LuaSwap and switch to tab “Limit order” on the top right screen
- Connect to your wallet on Metamask using this docs
- Select token you want to buy/sell then enter your amount
- Type in the price at which you want your order to be executed, and set a validity period for your order
- The order will then be displayed on “pending order” section