Symphony Finance allows users to create limit orders by placing an asset to sell. The traded asset is entered into a yield generation protocol such as Aave, Yearn, Mstable, etc. This feature allows limit orders to earn profit for the time they are in the order book. The initial deposit + earned income is automatically traded by the executor to purchase the asset if the price caps are met. The order creator receives buy assets automatically when the order is filled.
How does Symphony Finance work?
Creating a limit order in Symphony Finance is similar to other order book exchanges, with the only difference being that the sell asset must be listed in the contract. There is also a stop loss feature which is very useful for minimizing risk in case the selling price of an asset falls below a certain price. The sell asset is deposited to create DeFi protocols like Aave, Compound, Yearn, etc. This is clearly different from traditional limit orders where the sell asset is not used while the order is in the order book.
The Symphony architecture consists of 3 main components:
| Ядро | the central element of the architecture. Allows anyone to deposit funds and specifies the buy asset and amount to create a limit order. It also provides functionality to add a stop loss to minimize risk. |
| Yield strategy | assets for sale can have a yield strategy, associated with them. Funds are deposited into the strategy to generate income while the corresponding order is still in the order book. Protocols such as Aave, Compound, Yearn, Mstable, etc. can be profitable strategies. |
| Execution handlers | used by executors to execute an order. The executor can also use its own liquidity to execute orders. Each handler will be charged in addition to the base fee, set by protocol control. |
The Symphony Token will become the native currency of Symphony Finance, driving all of its features and incentive structures. This will be the control token.
More about defi app
If you have a rough idea of the price range of an asset (the maximum and minimum price that an asset can go to), you can create an order here and the assets continue to generate profitability, and when the desired rate is available on the market, the purchased asset and profitability will be transferred automatically. So just set a range (limit and stop loss) and wait for the result. Thus, you can take profits or hedge losses.