Economics
Beginner
Updated 1/15/2025
What is
Order?
An instruction to buy or sell an asset at specified conditions. On Ergo DEXs like Spectrum Finance, orders interact with AMM pools or can be limit orders.
An order in DeFi is an instruction to exchange one asset for another under specified conditions. On Ergo's decentralized exchanges like Spectrum Finance, orders typically interact with AMM (Automated Market Maker) pools for instant swaps, or can be limit orders that execute when price conditions are met. Unlike centralized exchanges with order books, AMM-based DEXs execute orders against liquidity pools. Ergo's eUTXO model enables unique order types including partial fills and composable multi-step orders.
Key Points
- Instruction to buy or sell assets
- AMM orders execute against liquidity pools
- Limit orders wait for price conditions
- Spectrum Finance is Ergo's main DEX
- eUTXO enables partial fills and composability
- Orders are transactions on the blockchain
Use Cases
1
Swapping tokens on Spectrum Finance
2
Setting limit orders for better prices
3
Understanding DEX trading mechanics
4
Comparing CEX vs DEX order execution
Technical Details
On Ergo DEXs, market orders swap immediately against AMM pools at current prices (with slippage tolerance). Limit orders create boxes with conditions that can be spent when price reaches the target. The eUTXO model allows orders to be partially filled across multiple transactions. Order execution is MEV-resistant due to the UTXO model - the order specifies exact outputs, preventing front-running.
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Frequently Asked Questions
Questions about Order
Common questions about this topic
How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
How-to
Getting Started
How to use Spectrum DEX on Ergo?
Connect your Nautilus wallet to Spectrum Finance, select tokens to swap, review the rate and slippage, then confirm. Spectrum uses AMM liquidity pools for instant trades. You can also provide liquidity to earn fees. All trades are atomic - they complete fully or not at all, with no front-running possible.
How-to
DeFi
What can I do with Ergo?
Ergo supports a full ecosystem: trade on Spectrum DEX, use SigmaUSD stablecoin, mix transactions with ErgoMixer, collect NFTs on SkyHarbor, mine with GPUs, lend/borrow on DuckPools, bridge to other chains via Rosen, and build dApps with ErgoScript. It's a complete platform for decentralized finance and applications.
Explainer
Getting Started
Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Comparison
Getting Started