Decentralized grid trading on Ergo

Continuing old idea of “smart orders” (see DEX orders with buyback guarantee, smart-order based DEXes , New Ergo Smart DEX Orders with buyback guarantees | Ergo Platform ) , we can do decentralized grid trading on Ergo (which is automatically compatible with existing DEXes, such as ErgoDEX LP pools and babel fees). Grid trading is a good way to make profits from volatility , and many CEXes offer it.

So for a grid element, let’s say grid cell order, a contract would be like:

  • could be withdrawn at any time by one who can sign with pubkey PK
  • if this is sell order, could be spent if corresponding buy order created at a lower price (e.g. price of the order * 0.99, so 1% lower), and the buy order is bound to PK. Similarly, buy order can be spent if corresponding sell order is created.

To create a grid then, just create as many orders as you want.

Similarly to ErgoDEX, offchain bots can make profits by executing grid orders (matching them with AMM LPs or other orders). Then it is enough to create grids once and then go offline. Unlike CEXes, funds will be SAFU.