Orbs on Friday introduced what it describes as the first decentralized stop-loss and take-profit system for decentralized exchanges, a development that brings one of centralized trading’s core risk-management tools onto public blockchains.
The protocol, called dSLTP, runs on Orbs’ Layer-3 infrastructure and allows automated stop orders to execute directly on DEXs without relying on centralized intermediaries.
Stop-loss and take-profit orders are widely used in traditional markets and on centralized crypto exchanges to cap downside or lock in gains without continuous monitoring.
Their absence on DEXs has long been viewed as a limitation for traders seeking automated execution or more nuanced risk controls. dSLTP enables both stop-market and stop-limit orders, with execution determined by predefined price levels.
The system also includes a user interface that DEXs can integrate into their platforms.
While decentralized exchanges support basic swaps, they often lack more advanced tools found on centralized venues.
Orbs has been developing additional trading mechanisms, including time-weighted average price (TWAP) execution and limit orders, through its existing dLIMIT and dTWAP protocols. dSLTP adds another component to that suite, using Orbs’ consensus layer to perform logic that is difficult to run directly on smart contracts.
Stop-market orders under the new system trigger execution once a price threshold is reached, though they may be subject to slippage during rapid moves. Stop-limit orders restrict execution to a specific price or better, reducing slippage risk but creating the possibility that the order will not fill if markets move past the limit.
Orbs positions its Layer-3 framework as an additional execution environment designed to handle more complex logic than what standard on-chain contracts typically support.
The network’s contributors, based across several global hubs, have focused on infrastructure for automated trading and liquidity management.
The introduction of dSLTP comes as decentralized exchanges attempt to narrow the functional gap with centralized platforms.
The degree to which on-chain markets adopt these tools may determine whether more advanced traders shift activity away from centralized venues, or whether the new infrastructure primarily serves existing DeFi users seeking more structured execution options.