Review of the Velox Beta Launch

Newly Designed Velox Logo
  • Dynamic Transaction Threshold — Following the initial announcement of Velox in December, there was a little-recognized feature on the UI called the Dynamic Transaction Threshold (DTT). This is a feature that allows a person to enter a buy or sell position and instructs Velox to only buy or sell up/down to the user defined level. For example, if you enter a buy strategy for a V-token at $10 or less / token and the price drops to $9.25, Velox will buy enough tokens to raise the price of the V-token to $10/token and then wait for the price to fall again below $10/token to purchase the rest. This feature comes in handy in LPs which have super low liquidity so that your buy order does not raise your average token price to $13/token, for example. This feature will have far reaching implications on blockchain networks which have negligible transaction fees. The initial Velox release featured a beta-version of the DTT which would halt a transaction if the buy/sell moved the resultant token price beyond what the user had entered. This is manageable for highly liquid pairs, but resulted in a large amount of failed transactions on newly seeded or low liquidity pools. We have removed the DTT-beta, are adjusting feature parameterizations, and will be adding a checkbox for users to opt into a refined version of this tool.
Velox will begin actively protecting traders from front-ran transactions.
  • Token Allowance Requirements — We have had a minority of customers who have not been happy with allowances on Velox and have not understood what function it serves in addition to why we set it up as such. Velox primarily requires allowances for two major reasons: as a user-facing security feature and to allow 24/7, non-custodial transactions. Many platforms request unlimited access to a token they interact with in a certain wallet. Even though this is easily instituted, it opens up the wallet to limitless smart contract exploits for every token they have approved. In order to better protect our users we require they approve a certain amount of tokens to be accessible by Velox at any given time. In addition, if allowances were not built into the Velox system, Velox would have to take custody of tokens through a supplementary smart contract or have access to a users private keys to guarantee order issuance. Since security and privacy is foundational to our design ethos, we found signing a gas-free strategy allowance as the best option for being able to execute orders on behalf of our users.
  • Wrapping Ethereum — wETH (wrapped ethereum) requirements have been confusing for traders as they need to allow a minimum of 1 wETH to begin trading in addition to gas fees. A large number of initial failed transactions blamed on Velox were simply the result of traders using wETH and not leaving enough for their following transactions. Some users did not also understand this and thought they needed to possess all the tokens they approved. As a means of limiting allowance confusion moving forward, we will be displaying expanded wETH approval calculations for new users rather than just a 1 wETH minimum.
Each strategy will come with a confirmation pop-up
  • Order Retrying — Currently within the Velox beta, we’ve halted any failed transaction from automatically retrying. This was done to prevent mis-issued trades or failed transactions from re-spending WETH in the event there was an error in the system. Now that the bugs are being worked out, we will open up automatic order retrying on strategies that do not execute due to failures outside of Velox’s control. Traders can enter how many times they want a limit order retried in the event of an execution failure. Velox will only charge an execution fee on a successful trade and the only additional costs will be supplementary gas fees. More information on failed transaction management will be provided in a coming article.
  • Failed Transaction Communication — We’ve realized that, while it is beneficial to communicate that a transaction did not succeed, it is far more useful for our users to know why it did not go through. This way they can see if there are alterations to their parameters that need made or if something was simply a result of blockchain/DEX limitations. The Velox system will begin recording, indexing, and error-logging all failed transactions in addition to providing users with a short explanation of what went wrong. The above mentioned article will have a deeper explanation of why something did not go through and what can be done to lessen the chances of that occurrence in the future.
Coming Velox UI with Pangolin, SushiSwap, % Trading, and Revised Strategy Table.

--

--

--

The scalable, highly efficient trading bot for decentralized exchanges.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

AN INTRODUCTION TO THINKIUM

Digital Twins: Linking the Physical and Cyber Worlds

Dvision Network & Origin Protocol Partnership Announcement

Whitelist Giveaway Event 3: Name That Monster!

UniFi AMA Recap

International Investor Delegation Visited ARES Tech Upon ARES Opening of Cornerstone Investment

What’s stopping countries from adopting blockchain?

SobaSwap — The Most Promising Yield Farm on Polygon

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Velox

Velox

The scalable, highly efficient trading bot for decentralized exchanges.

More from Medium

The Growing Role of DeFi Derivatives

Introduction to Fantom Force

Boost-Locking & Staking for Increased Yield

DOT DAO’s IDO(Initial Discord Offering)