What are Limit Orders within Sushi?
Introducing Toshokan, a community-first blog for Sushi

Introducing Toshokan, a community-first blog for Sushi

Today we're excited to introduce Toshokan (図書館 Japanese word for library), our new blog that will help keep our community informed about the latest happenings at Sushi.

3 min read

What are Limit Orders within Sushi?

Sushi limit orders offer a way to place trades for any rate of a given token pair, as well as earn a yield on funds deposited in BentoBox.
What are Limit Orders within Sushi?

What the heck are limit orders? Ok... So picture this, you're an Octopus and you want to get your tentacles on some shrimp for lunch. When determining whether or not to work for shrimp, think about how hungry you are, and what kind of work you're willing to do in order to get your hands on that shrimp. But hey! we're people and we swap obscure tokens with strangers on a blockchain with blocks that occur every 15ish seconds because computers buzzing away somewhere else choose to make it happen.

This is a strange way to approach limit orders I hear you saying, but really they are both instances of trading one thing for another when the costs make sense.

The purpose of a limit order is to allow an individual to trade something when it increases in value in relation to something else and they want that something else more. The trader sets the Limit at which point something happens. Simple.

Why are limit orders useful?

In traditional finance, limit orders are a critical part of trading. Limit orders provide a method for normal people with lives outside of trading to place orders when a stock reaches a price where they're happy taking profits, or think the price of something has dropped to a level where buying makes sense.

The ability to place an order to buy or sell at a predetermined value, also allows us, trading junkies, to take a break and give our bleeding eyes a break from the monitor, or just time to watch cat videos.

In short, a limited order saves time when you don't want to fuss over when to buy or sell. You determine how much to sell for or how cheap that shitcoin has to get before you'll pick up a bag.

How Sushi does it:

Sushi allows users the ability to place limit orders within the decentralized ecosystem. Most of us are familiar with centralized exchanges for placing limit orders, but here on Sushi, the transactions occur on the blockchain. For those of us who live by the ideals of blockchain technology, this is the way transactions should occur.

Sushi's method to make limit orders is simple: Bentobox. By depositing funds into Bentobox, from the Sushiswap interface, not only can a DeFiChad place them into liquidity pools, or borrow other assets, but also they gain the ability to carry out on-chain limit orders.

The initial extra cost of moving funds onto Bentobox are quickly outweighed by the additional functionality provided to our assets.

What makes it powerful?

Time is money, and money is time. Power is what you make of it. We can all use some rest and relaxation away from notifications telling us price data. Let your orders stand until the rewards can be reaped. Not only is this reason enough to use limit orders, but think about the potential for capturing volatility.

Volatility can cause a token to drop briefly drop below normal values creating an enormous opportunity to scoop up tokens at discount rates. With these drops, typically the winners are filthy Robots who capture these sales before even the speediest DeFiChad can mash all the buttons to make their trade.

How to use it:

Placing a limit order on Sushiswap is incredibly easy. Upon entering the Sushiswap.com website, just click the "Enter App" button in the top right-hand corner of the screen. This brings you to the Swap page. In the main swap box, there are two options: Swap and Limit. Simply click the Limit button, and you are ready to set your parameters.

Next, you will want to determine the assets you want to trade. The top asset is the one you have, and the bottom asset is the one you wish to obtain. Set the "rate" you wish to receive. The rate is how much of the chosen token you will receive for the token you supply.

The tokens will either be paid from your Wallet or Bentobox. If you are paying from your wallet, it will ask you to approve Bentobox and deposit the tokens into it for you upon completion of placing the limit order. It is important to remember that this kind of limit order trading requires smart contracts to be carried out on-chain and that is why this step is necessary.

Once you have chosen your amount of tokens to supply, and the rate you would like to receive for them, click Confirm. This will deposit the asset and set up the limit order.

Then sit back, and watch cat videos.

Read more about limit order swaps at:

🍣 Free Limit Order Swaps
Buy and sell tokens at any price, without having to constantly monitor the market! Try out Sushi’s Limit Order feature on Ethereum…