ZUG, SWITZERLAND / ACCESSWIRE / June 30, 2023 / Financial markets are becoming increasingly competitive, with the investment strategies of top-performing hedge funds dominated by automated or algorithmic trading - more than 50% of hedge funds employ bots to trade the majority of their capital. In the right hands, these trading bots can yield significant profits, passively generating income for investors.
The cryptocurrency market, with its wild price swings, presents a lucrative opportunity to employ trading bots and capture major market moves. However, most trading bots operate on centralized exchanges, preventing traders from harnessing the core principles of crypto: decentralization and self-custody.
Carbon DeFi emerges as a game changer, offering the unique opportunity to create custom trading bots on the Ethereum blockchain - allowing for permissionless, non-custodial, sophisticated automated trading strategies. The following article will explore how Carbon's trading bots operate and how they are positioned to take the performance of all token traders to the next level.
An Overview Of Carbon DeFi
Carbon DeFi is a decentralized trading protocol on the Ethereum blockchain, enabling users to create and execute automated trading strategies using custom on-chain limit orders and range orders. Unlike centralized trading platforms like Binance or 3Commas, Carbon leverages the power of the blockchain and offers a decentralized, non-custodial and fully transparent solution.
How To Trade Using Carbon DeFI - A Quick Walkthrough
Carbon's core functionality resembles what is referred to as "grid trading" - a popular strategy in traditional stock trading and centralized exchanges that has never before been possible on decentralized exchanges until now. You'll input any standard Ethereum token, set a buy range and a sell range, fund your strategy with a single token or two tokens, then sit back and relax and let the bots work for you.
As market prices move into your chosen ranges, your orders get automatically executed. Using this strategy, you'd be able to accumulate more tokens on dips (buy low) and automatically take profits at market tops (sell high).
You can set strategies to be "recurring," so you only need to determine the strategy once and have it then be executed repeatedly - allowing you to benefit from volatility, optimizing profits in various market conditions. On the flip side, it's also possible to create single-use orders like limit orders that execute at a specific price or a "range" order that executes across a range of prices, e.g., buy ETH between $1800-1900.
These are just two of the wide range of automated trading strategies that Carbon's advanced trading tools enable - with no coding required and no need to hold tokens on a centralized exchange. Simply put, it's the smarter way to trade - instead of simply sitting on your tokens you can take advantage of the notorious natural market volatility in crypto by automatically "buying the dips and selling the spikes".
Carbon DeFi's Trading Bots
Carbon differentiates itself from current automated market makers (AMMs) like Uniswap, PancakeSwap, and Camelot by emphasizing user customization. This allows Carbon users to establish their buy and sell ranges without adhering to the AMM's strategy, offering versatile swing trading options for traders to adapt to the fast-paced market conditions of crypto.
Customizable Trading Strategies
Carbon opens the door to countless different trading strategies which are only limited by the imagination of the trader. Strategies can be adjusted for all market conditions and custom-built for the risk tolerance or goals of the trader. Some examples are below:
- Native Onchain Limit and Range Orders: Execute one-time, irreversible trades at specific prices (limit order) or within a specific range of prices (range order).
- Scalping: Buy into a rising asset and gradually sell as the token continues to rise.
- Automated Range Trading ("Grid Trading"): Buy in one price range and sell in a higher price range, on repeat, until you choose to stop the strategy -- for example, an ETH/USDC strategy that buys ETH between $1800-1900 and sells ETH between $2100-2200.
- Arb Pegged Assets: For example, an ETH/rETH strategy that buys ETH when it de-pegs below the price of rETH, and sells the ETH when it re-pegs to the price of rETH.
Carbon's Unique Trading Features
Carbon DeFi supports a wide range of trading features that empower traders with control, security and flexibility, elevating the overall trading experience and potential to generate profit. Some key features are as follows:
- Supports All Standard ERC-20 Tokens: Built on Ethereum, Carbon strategies can be made for any standard token in the Ethereum ecosystem. This means traders can create strategies for various ERC-20 tokens such as WBTC, LINK, MATIC or ARB.
- Custom Strategy Creation: Custom buy and sell orders, linked together, to create a custom trading strategy.
- Automated Range Trading: Carbon's automated range trading feature dynamically shifts liquidity between the buy and sell orders within a strategy as orders are filled, providing a dynamic trading experience and compounding ROI.
- Ease of Modification: Once a strategy is in place, it can be quickly and easily adjusted without incurring significant Ethereum gas costs, and eliminating the need to remove and recreate positions.
- MEV Resistance: Carbon's asymmetric liquidity design provides resistance to miner extractable value (MEV) sandwich attacks, safeguarding user liquidity value and price expectations.
- Clean and Intuitive Interface: The carbondefi.xyz app boasts a simple and user-friendly design, making it accessible to users of all levels.
Embracing The Future Of Decentralized Trading With Carbon DeFi
Overall, Carbon is revolutionizing the DeFi world by making crypto bot trading, advanced tools, and customizable strategies available to the masses. As the crypto sphere evolves and grows more complex and competitive, Carbon's trading bots will enable both novice and savvy investors to leverage the power of automation and generate profits in various market conditions.
Featured photos courtesy of Carbon.
About Carbon
Carbon is a decentralized trading protocol allowing users to perform automated trading strategies using custom on-chain limit orders and range orders, with the option of combining orders together to create automated buy low, sell high strategies. By design, Carbon orders are irreversible on execution, easily adjustable directly on-chain, and resistant to MEV sandwich attacks. These capabilities give users an unprecedented level of control and automation to perform novel trading strategies on-chain.
About Bancor
Bancor is an ecosystem of decentralized, open-source protocols that promote on-chain trading and liquidity. Bancor invented the first blockchain-based automated market maker (AMM) in 2017. All Bancor ecosystem protocols are governed by the BancorDAO via staked BNT
About Bprotocol Foundation
The Bprotocol Foundation was established in 2017 in order to promote adoption of the Bancor protocol and decentralized, on-chain trading and liquidity.
Contact:
Bprotocol Foundation
[email protected]
SOURCE: Bprotocol Foundation