How it works

Let's go over what happens when you place a limit order on Ubeswap:

  1. You want to buy 5 CELO at a price of 3 cUSD each so you place a limit order on the Ubeswap interface

  2. The Ubeswap interface generates the order details: the tokens being traded, the token amounts etc. It then asks you to sign the order using your private key. This signature acts as an authorization for this order to be executable

  3. Your order details and signature are sent together to the UbeswapOrderBook smart contract. This smart contract simply logs the order and signature so that order fulfillers can find the order on-chain. This smart contract will also take an order placement fee to prevent order spam

  4. If the price of CELO falls below 3 cUSD, fulfillers will be incentivized to buy CELO at that cheaper price and fill your order for a profit. The more efficient the fulfiller, the closer they can fill your limit order to the current market price