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Why should I use it?

If you have a rough idea about the price range of an asset (max price an asset can go and the least it can go), you can create an order here and the assets keep generating yield, and when the desired rate is available in the market then the bought asset and yield get transferred to you automatically. So just set the range (limit and stop-loss) and relax. This way you can book profits or hedge losses. Imagine holding LUNA or UST during the de-pegging. You could set a stop-loss order and save yourself from heavy loss.

Who will execute orders and why?

The orders are executed by the "Executor" who is incentivized using ExecutionFee.

What's the yield source?

On Optimism, we use Aave v3 for the Yield source. On Polygon, we use Aave v2 and Aave v3 right now. We were planning to integrate more protocols such as a yield aggregator. In the initial days, we just want to integrate Safe Protocols but in the future, we plan to integrate a more complex yield strategy keeping in mind the risks attached to it.

Is the protocol permissionless?

The ownership of the contracts will be with the timelock contract which will have a minimum delay of 24 hours. All upgradable contracts can only be upgraded using multisig with the same delay. Initially, only multi-sig will be able to propose and execute transactions via timelock. Later the ownership of the contracts will be with the Symphony DAO.

What's the data on stop-loss usage? Is there a risk of bad slippage or failed execution during large market swings?

The execution depends entirely on the liquidity of DEXes. So by nature, yes there is a risk of failed execution if prices are moving too frequently. But because of our price & liquidity aggregation feature, we have better chances of matching the best price & liquidity for trades.

Are there any other fees or sources of protocol revenue? Does the platform do its own trading?

There is a platform fee on every order, which is currently 5bps. We may change that eventually depending on our strategy. The platform doesn’t do its own trading.

How has the development to date been funded?

Initially, it was self-funded and from grants that we received from Aave, Balancer, etc. Then, we raised a small round to fund the development.

Your order will be executed when the price of 1 token reaches the limit price. Does this mean someone else can create a small order within our limit and the rest of your Ask will be potentially filled with a worse price? Or would your order be split up into multiple trades?

We aggregate prices across DEXes and DEX aggregators and we use FCFS. So, your order will be executed first if there is liquidity. Currently, we don’t support iceberg orders. That’s in our future roadmap to support different types of orders.

What is the (%, total, net) advantage over using other DEX aggregators or yield managers? How big and how long do limit orders need to be in the pool to make additional gas costs from transactions worth it?

  1. 1.
    Compared to the Gelato limit order protocol on Polygon, the transaction cost is 50% cheaper.
  2. 2.
    A $1000 order takes anywhere approx 66 hours to earn more profit than the cost of the extra gas fee paid as compared to the 1inch Limit Order. But the point to note here is that most of the 1inch Limit orders are canceled. It might be because of a lack of incentives for the executor, the 1inch team will not be able to run the relayer because of the unstainable business model as of now. This delays the execution of limit orders which ultimately causes monetary loss. Here is the spreadsheet that demonstrates the time taken to recover the extra cost paid on Symphony DEX:
Comparing average fees for a transaction on 1inch Limit Order Protocol with Symphony DEX assuming ETH is priced at $1500.
Taking the example further and assuming the yield to be in the range of 5% APY, the order will earn back the fees paid as yield in ~ 66 hours.
Taking the same example, a chart illustrates the interest accrued over time.
Hence, in our example comparison with 1inch limit order, not only will the user recoup the extra transaction cost in around 2.5 days of yield but also continue to earn interest as per their order value and time period without any hassle on Symphony.

Have more questions?

Hop on to our discord.