DeFi's Automation Shortfall Addressed: Orbs Introduces dSLTP to Achieve CeFi-Grade Risk Control

Orbs, a provider of Layer-3 blockchain infrastructure, has introduced dSLTP, the first decentralized protocol for stop-loss and take-profit orders on decentralized exchanges (DEXs), representing a major step forward in DeFi risk management

. Developed on Orbs' decentralized Layer-3 platform, dSLTP is designed to close the gap between centralized and decentralized trading by delivering automation tools similar to those found in CeFi, all while preserving decentralization . This new protocol expands Orbs' suite of products, which already includes dLIMIT and dTWAP, offering DEXs a robust set of advanced trading functionalities .

With dSLTP, traders can now implement automated risk management strategies directly on the blockchain. The protocol accommodates both stop-market and stop-limit orders, letting users set specific price points to sell assets, either to minimize losses or secure profits

. Stop-market orders execute at the current market price once triggered, while stop-limit orders only execute at a predetermined price or better, helping to reduce slippage . Previously, such features were only available on centralized exchanges, but now DEX traders can also employ sophisticated risk/reward strategies .

The performance of dSLTP is powered by Orbs' Layer-3 infrastructure, which serves as an additional execution layer to process complex logic and scripts, eliminating the need for DEXs to build custom smart contracts or compete for blockchain resources

. Its user interface is built for seamless integration and flexibility, enabling DEXs to offer user-friendly platforms for managing stop orders . Utilizing Orbs' Proof-of-Stake consensus, dSLTP delivers high-speed execution while upholding security and decentralization .

The introduction of dSLTP fills a longstanding void in DeFi, where automated trading solutions have been scarce. Analysis from CoinLaw notes that the protocol’s flexible order types and risk management tools could significantly boost DEX adoption, especially in turbulent markets

. Now, traders can automate their trades without needing to constantly monitor the market . This advancement is in line with the broader DeFi movement, where institutional players are increasingly looking for sophisticated tools to maximize their returns.

With teams based in cities such as Tel Aviv, London, and New York, Orbs has established itself as a pioneer in creating CeFi-compatible solutions for decentralized trading

. Its ecosystem features protocols like dLIMIT and dTWAP, which further enhance DEX capabilities by supporting limit orders and time-weighted average price strategies . The launch of dSLTP further strengthens Orbs’ commitment to delivering institutional-grade tools to the DeFi sector .

dSLTP’s influence goes beyond individual traders. By providing a dedicated UI for DEX integration, Orbs empowers decentralized exchanges to better compete with their centralized counterparts

. This innovation could encourage more users to try DEXs, especially those who were previously hesitant due to the absence of automated risk management options . As DeFi evolves, solutions like dSLTP are set to transform on-chain trading by merging the openness of decentralization with the efficiency of centralized finance .