DeOrders 101... introducing SNIPER tokens!

In our last article, we enjoyed a brief overview of the 4 unique token types that make up the DeOrderBook ecosystem while also introducing users to HODL tokens. While it is a necessary first step for every DeOrderBook user to convert their supported cryptocurrencies into HODL tokens, the fun really starts once users start to place DeOrders: the limit orders that form the heart and soul of the protocol.

SNIPER and BULLET: the elements of a DeOrder

In this article, we’ll be going into the specifics of what a DeOrder is, as well as introducing two new token types. Whenever a DeOrder is placed with the strike and expiry selected by the user, an equal amount of SNIPER and BULLET tokens will each be generated encoded with the user’s specified parameters.

Trade with precision. Trade like a SNIPER.
Trade with precision. Trade like a SNIPER.

Here, we’ll look more into SNIPER tokens, which represent the option writer’s obligation to honor the order if it reaches its target strike price before the chosen expiry date. Our next article will be covering the BULLET token, which represents the right to exercise options and adds another layer of both complexity and profit to using DeOrderBook.

So… what’s a DeOrder?

Placing DeOrders allow users to earn while they HODL.
Placing DeOrders allow users to earn while they HODL.

DeOrders are similar in concept to limit orders in that they allow users to 'buy the dip' and 'take profits' at their desired target prices. When you process a DeOrder, you receive SNIPER tokens, which can be staked for $DOB yield.

This means if your limit order hits: you're in the money! If it doesn't, you get your money back plus the $DOB yield. It's a risk-minimized way to earn on top of your core portfolio.

What is SNIPER?

DeOrders generate matching SNIPER and BULLET token amounts.
DeOrders generate matching SNIPER and BULLET token amounts.

SNIPER is a token that is generated from HODL tokens using DeOrders, with SNIPER tokens from each supported currency are further separated by strike and expiry.

At the time of writing, DeOrderBook supports $wBTC and $USDC, with these tokens generating $bSNIPER and $uSNIPER tokens respectively.

What is SNIPER used for?

DeOrder is the process that generate SNIPER tokens: users choose a limit price and an expiry date.

In a nutshell, DeOrders stake SNIPER tokens to earn $DOB rewards. $DOB rewards keep users incentivized to HODL, place DeOrders, and govern the protocol. Stay tuned for another article on what makes earning (and locking!) $DOB rewards an attractive bet in a volatile crypto market.

What are the SNIPER pools?

The DeOrderBook protocol has created nine sub-pools for users to enter for fixed amounts of $DOB as rewards. Each of these sub-pools has a preselected strike price and expiry date. At launch, these pre-selected strikes and expiries allow for liquidity to be concentrated into pools and simplify the process of placing DeOrders for new users.

Users are able to stake their HODL tokens into these pools to receive juicy yields… while $DOB rewards themselves can also be staked for further rewards in the form of revenue-sharing as well as BULLET token rewards.

Stay tuned for the next article, when we’ll go into more detail about BULLET tokens and how to use them for the most effective and profitable trading strategies on DeOrderBook!

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