Off the Grid

A decentralized application (dApp) that builds on the grid trading contract proposed by kushti. It includes an execution bot/batcher for automating order matching without user interaction.

Back to Tooling GitHub Repository Getting Started Guide

What is Off the Grid?

Off the Grid is a decentralized application (dApp) that implements grid trading on the Ergo blockchain. It builds on the grid trading contract proposed by kushti and includes an execution bot/batcher for automating order matching without user interaction, enabling profitable trading strategies through automated market making.

Secure Contract Design

Utilizes a contract that permits spending only if orders are correctly filled or with the order owner's signature. This contract can manage multiple orders simultaneously with enhanced security.

  • Conditional spending logic
  • Multi-order management
  • Owner signature verification

Automated Execution

Employs off-chain bots/batchers to monitor grid orders and match them against other liquidity sources, providing automated trading without user interaction.

  • Off-chain monitoring
  • Automated matching
  • No user intervention

Multi-Source Liquidity

Currently matches orders against Spectrum Automated Market Makers (AMMs) but can be extended to other sources like the SigUSD bank for enhanced liquidity options.

  • Spectrum AMM integration
  • Extensible architecture
  • Multiple liquidity sources

Profit Optimization

Supports trading of ERG against any token with profits accumulated in ERGs. Grid orders profit from repeated execution while bot operators benefit from arbitrage opportunities.

  • ERG-based profits
  • Repeated execution profits
  • Arbitrage opportunities

Concept and Functionality

Grid trading is a strategy that places buy and sell orders at regular price intervals above and below a current market price. This approach allows traders to profit from market volatility by automatically buying low and selling high within a defined price range.

Off the Grid implements this concept on Ergo's blockchain using smart contracts and automated bots, making it the first decentralized grid trading solution that's automatically compatible with existing DEXes like Spectrum LP pools and babel fees.

Traditional Grid Trading

Centralized exchanges with limited transparency and control

Decentralized Grid Trading

Transparent, automated grid trading on blockchain with full control

Technical Implementation

The system uses advanced ErgoScript smart contracts that implement conditional spending logic. The contract only permits spending if orders are correctly filled or with the order owner's signature, ensuring security and preventing unauthorized transactions.

Smart Contract Features

  • Conditional spending logic
  • Multi-order management
  • Signature verification

Bot Architecture

  • Off-chain monitoring
  • Automated matching
  • Multi-source integration

Benefits and Use Cases

Grid trading is an excellent way to make profits from volatility, and many centralized exchanges offer it. Off the Grid brings this capability to the decentralized world with enhanced transparency and control.

Trading Benefits

  • Profit from volatility
  • Automated execution
  • Reduced emotional trading

Market Making

  • Provide liquidity
  • Earn trading fees
  • Arbitrage opportunities

Common Questions

How does grid trading work?

Grid trading places buy and sell orders at regular price intervals above and below the current market price. When the price moves up, sell orders are executed for profit. When it moves down, buy orders are executed to accumulate assets at lower prices.

What role do bots play?

Bots monitor grid orders and automatically match them against other liquidity sources like Spectrum AMMs. They execute trades without user intervention, ensuring optimal order matching and profit realization.

Is it secure?

Yes, the smart contract only permits spending if orders are correctly filled or with the order owner's signature. This ensures that funds cannot be spent without proper authorization or successful order execution.

How do I profit?

Profits come from the price difference between buy and sell orders in your grid. The bot automatically executes trades when price movements trigger your orders, and profits are accumulated in ERG tokens.

Resources & Community

Key Features

  • Secure Contract Design
  • Automated Execution
  • Multi-Source Liquidity
  • Profit Optimization
"We can do decentralized grid trading on Ergo (which is automatically compatible with existing DEXes, such as Spectrum LP pools and babel fees). Grid trading is a good way to make profits from volatility, and many CEXes offer it."

— kushti, ErgoForum