Trading on decentralized exchanges (DEX), users are usually faced with one ultimate issue: it is almost impossible to buy a large number of tokens without causing price spikes, resulting in unfavorable rates. The price slippage originates from the commonly used xyk liquidity model and is worst when the liquidity in the trading pool is small.
At WanLend, our mission is not only facilitating lending and borrowing. We aim to improve the DeFi user experience in general. The standing issue of large slippage does not skip our eyes. Hence, we are here to offer a solution.
Introduction to Stream Trade
Stream Trade is developed and operated by the WanLend team. The idea behind Stream Trade is that instead of buying or selling all tokens at once, we design a system that continuously buys or sells smaller amounts of tokens at given time intervals. For example, Bob wants to buy $100,000 WAN using wanUSDT. If he buys at once, he can only get $90,000 WAN due to the price slippage. Alternatively, he can use Stream Trade to buy $100 WAN each time for 1000 times, and over the course of 4 days. All of this will happen automatically without Bob’s intervention.
Stream Trade URL: https://streamtrade.wanlend.finance
Benefits of Using Stream Trade
Less price slippage. Trading happens continuously over a pre-determined time period, so there will be much more time for the liquidity pool/s in the trading route to rebalance to more stable prices. The users will experience the benefit of less slippage & price impact, which can be quite detrimental when the desired trading amount is very large and/or the liquidity available in the trading route pool/s is small.
Automatic dollar-cost averaging. Crypto assets are highly volatile. It is really difficult to time the market for trading, i.e., buy at the bottom and sell at the top. Hence, practicing dollar-cost averaging strategies for buying and selling assets can be advantageous. With Stream Trade, users can set stream sell orders for when they predict that the price is peaking, and set stream buy orders for when the price is predicted to have bottomed-out.
Workflow of Stream Trade
The Stream Trade workflow is shown in Figure 1. Users will use the Stream Trade UI to deposit or withdraw funds from the smart contracts. Those funds will be used to automatically buy or sell in WanSwap according to the users’ settings. All the buy/sell events are automatically triggered by an Agent, which receives periodic instructions from a cloud Scheduler.
Stream Trade is also highly flexible. The users can set different timespan and different asset pairs, as shown in Figure 2.
Usage of WAND in Stream Trade
The WAND or WASP tokens in Stream Trade are used as collateralization to enable the trade function. Users need to lock WAND or WASP tokens that are proportional to their specified Stream Trade fund amounts to activate the function. Upon trading termination either at finishing time or manual disruption by the users themselves, the WAND or WASP tokens will be returned to the users’ wallets.
Stream Trade User Guide
For the details of how to use Stream Trade, please go to
About WanLend
Wanlend is an autonomous, decentralized money protocol that allows crypto-asset users to borrow and lend digital assets on the Wanchain blockchain.
Telegram: @WanLendV2
Twitter: @WanLend