3 Reasons You Should Be Trading on Loopring DEX

Transcript

[Music] hi everyone this is d5 dad and this is another bankless tutorial today i'm going to walk you through three common reasons that i think traders should or could be using loop ring so we're going to walk through loopering decks this is powered by the loop ring protocol this is a place where i can place limit buy and limit sell orders or i can place the limit

buy or sell price at a low enough or high enough point so that it executes it like a market order immediately and so this is a place that i know that i can trade for a fraction of a cent per trade in gas i pay zero percent on maker orders and i pay 0.06 percent on taker orders but the gas if we go to an example of an order i've placed previously you can see here that i'm paying fees that add up to around a cent sometimes less than a cent and i'd say with the price of ether today around 400 i think this is around four cents

loopering looks and feels a lot like a coinbase pro or a binance but you're completely in control of your assets and you accomplish that by using metamask you can link your metamask wallet address to a loop ring quote unquote account but again in order to use loop ring decks all i have to do is have metamask or a wallet connect compatible wallet so that would be like the argent wallet which you can connect through wallet connect and then what i'm doing is i'm tying my ethereum address to the exchange merkle tree so i'm not creating

an account like you would on a centralized exchange i'm still 100 in control of my assets and there's no one at loop ring that can save me from myself so if i lose control of my wallet i will lose the assets that i have control of with that wallet setting up an account takes about 5 to 30 minutes one thing to be aware of is there are different referral codes there's one from bank list that i'll link in the show notes or in the youtube video and that helps you to save on some fees when trading on loop ring once i set up my account i want to deposit some assets so that i can trade so i go to account there's a long list of assets now

available to trade on loop rings so you can check them all out here including wi-fi and the new curve dow token and if i want to deposit those all i have to do is click deposit and then choose however much i have available in my ethereum wallet so let's say i choose what's here and i click deposit and then i would just go through the normal steps uh with any sort of ethereum transaction if i haven't done this previously i'm going to have to give permission to spend the token that's in my wallet and then actually do a second transaction to deposit it once i've connected my ethereum wallet

to the merkle tree of loopring aka registering an account and i've deposited some assets that i can trade i can start to trade so here are the three common reasons that folks should be using loop ring number one is i'm trading at least a few times a week or a few times a month and hence i would benefit from saving on all of the gas that i'm paying on different dexes or dex aggregators so the thing that i would do is i would come here to look up all of the different assets that are available and all of the different pairings and if there are those pairings

available if i'm trading let's say eth back and forth between ethan usdc well i could be saving quite a bit by trading here on loop ring so let's give a quick example of a trade i've got some ether and i'm going to sell it for tether now i could be setting limit orders in advance trying to of course sell higher so in this case i might put in a sell limit order for a price of ether of let's say 450 tether and i'm going to go ahead and sell 50 of what i've got here and i'm going to receive about 95 tether

so if i click sell this is now a limit order it's an open order of course and if that gets filled if we go up to 450 tether in terms of the price of ether that'll get filled and that'll show up then in my order history it's all really standard stuff that you you'd see on any other exchange and if i want to cancel the order i can do that here now different than that let's pretend that i want to sell my ether now and i can see here on the order book that sell orders are at around 403.66 tether so i could put that below

that or i could just let's say choose this price here so that my order will definitely go through and we'll go ahead and sell let's do 0.05 eth so i'll get 20 tether back from this and now if i if i click this and make sure that the price here is higher than the limit price that i'm putting in here it'll definitely execute it actually let's go ahead and just make it 403 dollars just to be safe and if i hit sell there we go so my order was submitted it was executed

uh you can see it happens within milliseconds and there we go it was already filled and i got my 20 tether so one of the things i like about loopering is again it looks and feels a lot like the centralized exchange experience except i'm still in control of my assets so let's take a look at how much i paid in terms of the fees to execute this order so we'll go to orders fill history so i paid .01 to tether which is about one cent to put in an order like this right now on uh some of the most popular dexes like uniswap you're going to pay about ten dollars at least in gas

that's just the going rate to put through a transaction when gas prices are up around 100 way there's zero reason that i should be paying that if i know that i'm going to be trading back and forth between let's say ether and tether i can instead just use loop ring and deposit my assets here and do my trading here reason number two is if i'm looking to accumulate if i'm looking to accumulate a certain token and i'm going to be trying to place limit orders so that i can buy that token at a certain price that really does limit me in terms of

which uh defy app that i would be using loop ring sits on that short list and so it makes sense that i can come in to loop ring and i can be placing limit orders for the best possible price you know let's pretend i want to buy ether at 250 and i will be placing an order for one ether or let's do whatever i have available with the tether i have here and then i could uh click that i'm going to buy .08 ether at around 250 tether or better so if i click buy now i can see in my open orders that i have

a limit buy for that ether a third reason that i could be using loop ring is to be placing wishful orders when i say a wishful order i mean a price that i could only wish for it to hit so similar to what i did here i could instead go in and put a much lower price if i'm trying to buy or a much higher price if i'm trying to sell something that i regularly wouldn't believe that the market would take us to but i'm putting it there just in case i get lucky so maybe i'd put in for let's say 149. ether

and i would buy as much as possible here with my 20 tether but i'm going to put in this wishful order for some unforeseen rainy day in the markets that brings the price down to 149 so i could click that and now i've got that sitting there this is something i regularly do to place these wishful orders just in case the market takes us there it very often doesn't but on rare occasion i'll get a buy at a very very low price and that's kind of the silver lining to the markets crashing on a single day all right so just a quick recap of all

the risks to consider in terms of what i've covered here today first off if i'm using loop ring i'm 100 in control of my assets which means that if i lose control of my wallet i lose control of my assets so i'm in charge and while that's empowering it also puts all the pressure on me to custody and keep my my private key safe for my wallet and make sure that i don't lose that risk number two is liquidity loop ring decks is still rather new it doesn't have the same liquidity that you'd find on a centralized exchange their trading volume has been increasing

over the last several months so a good example of this is if i look at the ether tether market it's going to be more liquid than if i look at one of the newer markets like the ren btc market with tether so this uh is a market that's really new it's not very liquid and it's just something to be aware of if i come here to see that very few orders are being placed or that the 24 hour volume is only 1900 that tells me that if i place an order especially if i'm trying to place an order that executes very quickly it's probably not going to execute very quickly and i need to either be patient

and just wait for that market to become more liquid or i could place a limit order and that would then contribute to future liquidity and give me a chance to get a buy or sell order at a price that i want reason number three is one that we talk about in every tutorial uh smart contract risk if there is some bug in the code here that's unforeseen that would put my funds potentially at risk so i would have to consider that smart contract risk and whether or not it's worth me trading with whatever value of funds on loop ring the last risk to consider is uh exposure to stable coins or pegged assets like renbtc so

if you've never had exposure to renbtc this is tokenized bitcoin and so we're all reliant upon that peg holding and the market's continuing to buy and sell at a price that remains uh near equivalent to what bitcoins is and then the other uh part of that equation that we are talking about is is just the stable coins so i am similarly reliant upon those pegs and if those pegs were to fail uh that would be pretty disastrous to the value of the assets that i'm holding all right that's all i've got for you thanks for watching and if you've got any questions you can reach us in the youtube comments or in the bankless

discord if you're a bankless member also don't forget to subscribe to my youtube channel at d5dad.com that's d-e-f-i-d-a-d dot com and i cover all sorts of similar topics uh that can help you truly take advantage of all of the new defy apps and protocols thanks so much and i'll see you next time [Music] you