Decentralized Grid Trading is here

Grid Trading is an automated trading strategy that helps you profit from the ups and downs of a market by placing multiple buy and sell orders at predetermined price levels, called “grid levels”. It’s a simple way to make money by buying low and selling high. Grid Trading has the potential to generate high double-digit APR (annual percentage returns), making it an enticing strategy for traders seeking consistent profits.

While Grid Trading is a proven battle-tested strategy in forex and stock markets, its potential in the decentralized finance (Defi) landscape remains largely untapped. DeFi degens are familiar with liquidity providing on Automated Market Makers (AMM), but Grid Trading remains underutilized. This method requires an order book, and the scarcity of order book decentralized exchanges (DEX) hinders its adoption in DeFi. But now, with the rise of Layer 2s, running an order book DEX has become a reality.

Running an order-book DEX fully on-chain is very expensive and cannot meet the ease and speed traders need. Every transaction on the blockchain incurs gas fees, making actions like token approval, signing, and order cancellation costly. This can render on-chain limit orders unprofitable for high-frequency or small trades. Additionally, on-chain limit orders depend on a matching taker for successful completion. Various factors, such as…