Trading the Market
Defly enables painless and user-friendly trading with an extensive suite of features – vPools, auto-routing, combo swaps, and limit orders – that will empower you to trade the market to the best of your ability.
vPools aggregate all the DEXs across the ecosystem and auto-routing automatically selects the best price possible on your swaps. This experience is optimized to be as seamless and user-friendly as possible.
When you click into a vPool and select “Buy,” you will be auto-routed to the best price across all DEXs automatically after price impact and fees are taken into account:
You can view the other routes considered by selecting the "i" icon next to "Best route".
You can use this feature to take advantage of arbitrage opportunities across DEXs by manually purchasing assets on a discount on one DEX, and selling them at true market price on another.
Defly will continue to integrate DEXs as they go live to ensure you always receive the best price possible on your swaps.
Combo swaps aggregate Defly’s integrated DEXs together to produce an optimized swap across them. Combo swaps produce “negative fees” – or combo gains – since any of the fees you pay will be negated by how much more you gain on your combo swaps.
Combo swaps are suggested when they’re the best option for the trader. Combo gains typically increase with swap amount:
Combo swaps help to mitigate overall price impact by aggregating all available liquidity together to increase the depth of an asset pairing.
When making a swap, it is important to keep the following in mind: the price impact and pool liquidity.
The price impact is the influence your trade has on the overall market price of an asset pair. If the price impact is high, you may lose a significant amount of your funds:
As you can see from the example above, as the buy amount of $DEFLY increases, its market price increases as well. This increase in market price results in the trader receiving less $DEFLY.
This is due to a high swap amount in relation to the pool liquidity. After every swap, DEXs calculate a new exchange rate between assets. If the swap amount is high when compared to the liquidity available, the price of an asset will increase due to more demand than supply.
You can monitor pool and vPool liquidity directly from the swap screen to ensure the pool you’re trading into is deep enough.
Make sure to keep an eye on both price impact and vPool liquidity to ensure you’re maximizing your trades.
Before executing a swap, you can check the market sentiment by reviewing the order book or latest chart under "Market sentiment":
You can switch between market sentiment and charting by modifying your "Recent market view" in Preferences.
To initiate a swap, either click on an asset pairing from the vPools tab or navigate directly to the Swaps tab and manually input the pairing you want to swap:
Once you’ve finalized your swap, select the “Swap” button:
Before executing your swap, you can check the estimated fees by clicking the ‘i’ icon next to fees. Once you’ve reviewed and validated the fees, you can execute the swap by swiping right to confirm and sign the transaction:
Defly auto-opts into assets and redeems excess funds during swaps.
Limit orders enable users to place orders at a predetermined exchange rate. They will be filled when the market can supply the requested target amount. Alternatively they may expire after a user-select time or manually be canceled.
Limit orders are powered by Deflex, an Algorand-wide exchange protocol. Deflex's default limit order filler service uses a highly optimized order router. This means limit orders benefit from similar optimizations as combo swaps.
To initiate a limit order, navigate to the Swaps tab, select your asset pair, and switch from “Market” to “Limit” mode:
Input the amount you want to swap and use the “-” and “+” icons to decide your limit price. Use the “Limit price” section to guide your decision:
The “+” sign will lower your limit price when swapping out of ALGO, which is useful for buying dips. When swapping into ALGO, the “+” will increase your limit price and is useful for selling rips.
Before you finalize a limit order, use the “Expiration” section to define when the order expires:
Once the order expires, the input amount is automatically returned to your account. You can always cancel an order manually before it expires.
To place your limit order, select “Place order” and swipe to confirm the transaction:
The orders you’ve placed can be viewed in the “Your open orders” section on the Swap tab. Select an order to view its details. If you want to manually cancel it, select “Cancel order”: