โ›ฝGasless order expained

Allowing users to follow and replicate the best traders' strategies

Gasless Orders overview

Overview

The concept of "Gasless Orders" in the DCE Sniper Bot represents a significant advancement in how transactions are conducted on the Ethereum blockchain. This feature allows users to execute trades without the immediate burden of paying Ethereum network gas fees at the time of order placement. Allowing you to hedge your bets with a diverse set of orders and hope you can land one. Here's a simple and detailed explanation, followed by examples to illustrate the process.

Simple Explanation

In gasless orders, users approve a router contract to handle their WETH (Wrapped Ethereum) for trading. They then sign a transaction specifying the conditions under which they want to buy or sell a token. This signed transaction is sent to a web server and not directly submitted to the blockchain. Instead, it's broadcast to third-party agents called resolvers. These resolvers monitor market conditions and execute the order when those conditions are met, managing the gas costs to fill the order. Thus, while there is no cost to place the order, executing or filling the order still incurs gas fees, which are handled by the resolver.

Detailed Explanation

Approval and Signing

  1. Token Approval: Users first approve a smart contract (router) to access a specific amount of their WETH designated for trading.

  2. Transaction Signing: Users sign a transaction with the terms of their order, including the amount of token they want to buy or sell and the price conditions.

Order Submission and Execution

  1. HTTP Server Submission: The signed transaction is sent to an HTTP server instead of being directly broadcast on the Ethereum network. This method avoids the initial gas fees typically associated with placing orders.

  2. Resolver Action: Resolversโ€”third-party servicesโ€”continuously monitor the market conditions. When the price hits the user's target, the resolver executes the order, managing the gas needed to complete the transaction on the blockchain.

  3. Costs Involved: While the user does not pay for the gas to submit the order, they must ensure that the transaction budget includes the potential gas costs that the resolver will incur to execute the order, along with the purchase amount.

Example 1

A user wants to buy 10 BNB tokens with a budget of $3,000, anticipating a drop in BNB price to $300 each, while the current price of BNB is $400. The user would setup:

  • Spending Token: 1 WETH (worth $3,000)

  • Receiving Token: BNB, targeted amount of 10 tokens

  • Execution Condition: The user calculates to include potential resolver fees and decides that the order should execute when BNB hits approximately $292.50 per token to accommodate for the resolver's gas fees.

Example 2

Consider a user looking to sell 2 ETH in exchange for DAI when the price of ETH rises to $2,000 per ETH. The current price of ETH is $1,900. The user decides:

  • Spending Token: 2 ETH

  • Receiving Token: DAI

  • Order Setup: The user would set the order to execute when the price of ETH reaches $2,000.

  • Budget Consideration: To account for the resolver's fees, the user calculates a slight reduction in the expected DAI amount, preparing to receive slightly less DAI than the $4,000 if ETH reaches the target price, factoring in about $50 for gas costs. Therefore, the user sets the receiving amount based on a price of $1,975 per ETH instead of $2,000.

These examples illustrate how users must carefully align their budget, the expected trade conditions, and additional costs for resolver fees to successfully execute gasless orders. This innovative approach allows users to participate in Ethereum-based trading with more flexibility and reduced upfront costs.

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