Automated strategies in DeFi: The future of trading bots detailed - Qoneqt
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    Vikshita Vitthal Gujaran in DeFi News

    13 Feb 12:37 PM


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    Automated strategies in DeFi: The future of trading bots detailed

    DEX trading bots are transforming decentralized finance by automating complex trading strategies and enhancing market efficiency.

    Carbon DeFi by Bancor utilizes DEX trading bots and provides users with sophisticated trading tools and market arbitrage opportunities across blockchain networks.

    Trading digital assets, especially in decentralized finance (DeFi), has traditionally been fraught with obstacles. Traders grapple with issues like liquidity shortages, high slippage and the ever-present threat of price volatility. These factors create an environment of uncertainty and demand constant vigilance and quick response, which can be overwhelming, even for experienced traders.

    Enter decentralized exchange (DEX) trading bots, which operate 24/7, ensuring no profitable opportunity is missed. These automated systems are tailored to navigate the intricate web of DeFi markets, executing trades with precision and efficiency far surpassing human capabilities.

    By leveraging advanced algorithms, DEX trading bots can analyze market trends, predict price movements and execute trades at optimal times, mitigating risks associated with manual trading. The emergence of DEX trading bots is not just a trend but a response to a growing need within the DeFi ecosystem.

    Advanced trading algorithms for market arbitrage
    Carbon DeFi, a sophisticated DEX introduced by the open-source DeFi protocol ecosystem Bancor, is at the forefront of this automated trading transformation. Cardon DeFi blends the features of a trading platform and a trading bot by integrating another Bancor protocol, the Arb Fast Lane, which seamlessly connects traders on Carbon DeFi with various on-chain marketplaces, enabling efficient and accessible market arbitrage.

    Enabling users to design complex trading strategies, Carbon DeFi aims to transform automated trading by introducing user-friendly, orderbook-like features that combine advanced technology with accessibility.

    The DEX supports various order types, such as limit (setting a target price for buying or selling) and range (selecting a price range within which to trade), which can be composed into recurring (automated buy low, sell high) and overlapping (concentrated liquidity) strategies. All of these order types are deliberately resistant to sandwich attacks, a type of predatory market manipulation.


    #Ethereum
    #Volatility
    #Bot
    #DeFi
    #Trading
    #Layer2
    #Liquidity
    #DEX

    Source - Coin Telegraph