Symphony finance allows users to create limit orders by depositing the sell asset. The order is filled automatically by an “Executor” who takes a fee to execute the orders only if the order’s price constraints are satisfied. The sell asset is deposited to a yield generating protocol like Aave, Yearn, Mstable, etc.
This feature allows limit orders to earn yield for the time they are on the order book. The initial deposit + yield earned are traded for the buy asset by the executor only if the price constraints are satisfied. The order creator receives the buy assets automatically when the order is filled. The order creator can also set a stop loss to minimise losses while still earning yield.
Symphony Finance Architecture
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About Symphony Finance
Symphony Finance maximizes the total return using limit order + yield generation. The sell asset is deposited to a yield generating protocol like Aave, Mstable, Yearn, etc. This feature allows limit orders to earn yield for the time they are on the order book. The order creator receives the buy asset automatically when the order is filled. The orders are filled automatically by “Executors”. The executor receives a small fee for executing the orders as they have to bear the expenses for running the relayer service and transaction costs.
Stop-loss is another great feature that allows for minimizing risk in case the sell asset price goes below a certain price threshold. Symphony limit orders are obviously different from the traditional limit orders where the sell assets are not utilized while the order is on the order book.