DeFi Stop-Losses — Protect your investments on BNB Chain, Avalanche, and Fantom with Bogged Finance
In this article we’ll explore Bogged Finance DeFi stop-losses, a trading tool available for PancakeSwap, Trader Joe, SpookySwap and many more.
Bogged Finance’s mission is to bring trading tools known from centralised exchanges into the DeFi sphere. These include limit orders, real-time charting and various order types.
One of these tools is Bogged Finance DeFi stop-losses, which since launch have been warmly welcomed by the DeFi trading community. As many traders probably know by now, DeFi trading can be volatile, particularly when dealing with ”low cap” tokens, where the risk of great losses can be just as big as the promise of great rewards.
Bogged Finance DeFi stop-losses aim to mitigate some of the risk involved in trades such as these, and give traders a bit of peace of mind when leaving positions open overnight.
What are DeFi stop-losses?
DeFi stop-losses on Bogged Finance work just like a stop-loss on a centralised exchange, which some traders may be familiar with. A stop-loss is an automated order, which traders set to protect them against losses. For example, a trader may wish to exit a position if it falls below 20% of its entry price, to avoid further losses if the price keeps falling.
When coupled with a sound trading strategy, stop-losses can be incredibly powerful, allowing traders to manage positions with little input. This benefit is increased further when stop-losses are used with Limit Orders, which Bogged Finance also provides for DeFi trading.
How do stop-losses work on Bogged Finance?
Setting a stop-loss on Bogged Finance is simple:
- Traders choose how much of their position to exit when the stop-loss is triggered.
- Traders choose the trigger price of the stop-loss
- Traders choose which output token they want when the stop-loss triggers
- Set token tax and order expiry (up to 1yr), approve the tokens and then set the order!
Example of a DeFi Stop-Loss order
In the below screenshot, a stop-loss is being set on the BNB token. We have entered this trade with 0.07 BNB purchased at $435 per BNB. As part of our trading strategy, we wish to exit the position into USDC if the price of BNB falls below $400 (8%).
To set a stop-loss with those parameters, we enter the following into the DApp:
We can then place the order. That’s it, simply set and forget! The Bogged Finance platform will take care of the rest by closely monitoring the price and automatically filling the order. There’s no need for traders to keep any devices switched on, or connected. Note that tokens are not removed from your wallet until the order fills, so make sure to maintain a sufficient balance or the order will be cancelled.
Setting a Bogged Finance DeFi stop-loss will cost $2.50 worth of $BOG (see below), or $3.00 worth of the native token of the chain you’re trading on. (BNB, AVAX, FTM, etc)
Bogged Finance DeFi stop-losses will work for any token with sufficient liquidity for the trade, on the below DEXes:
BNB Chain (Binance Smart Chain)
- Elk Finance
- Elk Finance
Can’t see your favourite chain/DEX? The Bogged Finance team is in the process of a cross-chain expansion which means this list is being constantly updated. Stay tuned for more!
Are Bogged Finance DeFi stop-losses safe?
At Bogged Finance fund safety is our top priority. As a platform with over $1 billion in total volume processed, we understand the need to maintain the trust our hundreds of thousands of users are putting in us.
We maintain this trust by partaking in thorough internal audits of all smart contracts that interact with user’s funds. The nature of utilising smart contracts also has the major benefit that they are completely transparent- our confidence in these contracts and our commitment to safety has led us to launch a comprehensive bug bounty program in partnership with Immunefi. This is alongside working with major auditing partners such as Certik.
When a trader places a stop-loss order, they grant a Bogged Finance smart contract access to spend only the token being traded; Bogged Finance cannot touch any other funds. If a user changes their mind about the stop-loss they can cancel the order through our interface, or revoke the approval using their wallet app, which prevents Bogged Finance from ever interacting with the wallet again.
The Bogged Finance token $BOG — Powering DeFi stop-losses and more
You may have noticed that stop-losses can be paid for in a token called $BOG. This is the Bogged Finance governance token, and is used for payment across the platform. Using $BOG unlocks professional grade features, gives order discounts and it can be staked for a fair share of platform revenue — a novel way of distributing staking rewards. 75% of the revenue generated from stop-losses and other order types on Bogged Finance are distributed to stakers. To learn more about staking on Bogged Finance, check out https://app.bogged.finance/staking.
The Bogged Finance ecosystem — More than just stop-losses
Bogged Finance also offer a wide range of DeFi tools not covered in this article, including;
- BogSwap DEX Aggregator A DeFi swap interface that offers users the best available trade price, every time, as well as advanced features. Read more.
- BogCharts A feature-complete DeFi charting platform including advanced analytics, contract analysis, token research and much more
- DeFi Limit Orders Powerful limit orders that work for any DeFi token
- Advanced Portfolio Analytics Get deep insights into your DeFi holdings
- Token Launch Sniper An advanced tool allowing traders to get in on launches early
Bogged Finance is an ever-growing trading platform, with more features being added regularly. In late 2021, we held a developer AMA where our co-founders Luke and John laid out the plans for the first portion of 2022. A recap of the AMA is laid out in our Medium post.
If you’d like to learn more about the Bogged Finance platform, please visit bogged.finance If you’d like to get in touch with the team or community, you can do so on Reddit, Twitter, Discord and our Telegram Group.