Trading
Bluespade is a decentralized exchange allowing trading without the need for a username or password. The platform uses an aggregate price feed which reduces the risk of liquidations from temporary wicks.
Adding a wallet
If you do not have a wallet yet, you can use MetaMask: https://metamask.io/download.html
Connecting your wallet
After you have a wallet, you can connect your wallet by pressing the "Connect Wallet" button on the
Bluespade Trade page: https://www.bluespade.xyz/#/trade
Sending tokens
You will need to have ETH in your metamask wallet account to start trading.You can buy ETH directly on CEXes like Gate.io, Binance, etc and send them into your Metamask. The transfer will take a few minutes, you will also be able to transfer out within a few minutes as well if you use any of the below options.
For leverage trading, please see the below sections for more information.
Opening a position
Click on "Long" or "Short" depending on which side you would like to open a leverage position on.
Long position
Earns a profit if the token's price goes up
Makes a loss if the token's price goes down
Short position
Earns a profit if the token's price goes down
Makes a loss if the token's price goes up
After selecting your side, key in the amount you want to pay and the leverage you want to use, in the below example 0.5 ETH worth 1052.58 USD is being used to buy a 100x BTC (Bitcoin) long position of size 94,924.30 USD
The "Entry Price" is $30,305.45 and the Liquidation Price is $30,272.46.
The exit price will change with the price of the token you are longing or shorting.The trading fee to open a position is 0.1% of the position size, similarly there is a 0.1% fee when closing the position.There is also a "Borrow Fee" that is deducted at the start of every hour. This is the fee paid to the counter-party of your trade. The fee per hour will vary based on utilization, it is calculated as (assets borrowed) / (total assets in pool) * 0.01%.
While there are no price impacts for trades, there can be slippage due to price movements between when your trade transaction is submitted and when it is confirmed on the blockchain. Slippage is the difference between the expected price of the trade and the execution price, this can be customised by clicking on the "..." icon next to your address at the top right of the page.
Managing Positions
After opening a trade, you would be able to view it under your Positions list, you can also click on "Edit" to deposit or withdraw collateral, this allows you to manage your leverage and liquidation price. When you open a position or deposit collateral, a snapshot of the USD price of your collateral is taken, so e.g. if your collateral is 0.1 ETH and the price of ETH is $2024.22 at the time, then your collateral is 202.42 USD and will not change even if the price of ETH changes. The amount of profit and loss you make will be proportional to your position size
Closing a Position
You can close a position partially or completely by clicking on the "Close" button.For long positions, profits are paid in the asset you are longing, e.g. if you long ETH you would get your profits as ETH. For short positions, profits will be paid out in the same stablecoin that you used to open the position, e.g. USDC or USDT. If the ETH transfer does show, it would be displayed under the "Interacted With" section.
Stop-Loss / Take-Profit Orders
You can also set stop-loss and take-profit orders by clicking on the "Close" button and selecting the "Trigger" tab. After creating a trigger order, it will appear in your position's row as well as under the "Orders" tab, you can edit it the order and change the trigger price if needed.
If you close a position manually, the associated trigger orders will remain open, you would need to cancel them manually if you do not want the order to be active when opening future positions.Note that orders are not guaranteed to execute, this can occur in a few situations including but not exclusive to:
The mark price which is an aggregate of exchange prices did not reach the specified price
The specified price was reached but not long enough for it to be executed
No keeper picked up the order for execution
Additionally, trigger orders are market orders and are not guaranteed to execute at the trigger price.
Partial Liquidations
In the example, since only a percentage worth of tokens is used as collateral to open the position, there will be a price at which the loss amount is very close to the collateral amount. This is the Liquidation Price and is calculated as the price at which the (collateral - losses - borrow fee) is less than 1% of your position's size. If the token's price crosses this point then the position will be automatically closed. Due to the borrow fee your liquidation price will change over time, especially if you use a leverage that is more than 10x and have the position open for more than a few days, so it is important to monitor your liquidation price. If there is any collateral remaining after deducting losses and fees, then the corresponding amount would be returned to your account.
Pricing
There is no price impact for trades on BLU, so you can execute large trades exactly at the mark price. During times of high volatility there will be a spread from the Pyth/Band price to the median price of reference exchanges. The mark prices are displayed next to the market name, long positions will be opened at the higher price and closed at the lower price while short positions will be opened at the lower price and closed at the higher price. The chart will indicate the average of the two mark prices.
Fees
The cost to open / close a position is 0.1% of the position size
Execution Fee
There are two transactions involved in opening / closing / editing a position:
User sends the first transaction to request open / close / deposit collateral / withdraw collateral
Keepers observe the blockchain for these requests then execute them
Stablecoin Pricing
In case the price of a stablecoin depegs from 1 USD:
Opening and closing short positions during this time would incur a cost on the collateral based on a spread of 1 USD to the Pyth/Band price of the stablecoin. For example, if the price of the chosen stablecoin depegs to 0.95 USD, opening a position using 1000 of that stablecoin would result in a position collateral of 950 USD based on a price of 0.95 USD, when closing the position, 950 of the stablecoin would be withdrawn based on a price of 1 USD, this is to prevent front-running issues during a depeg since collateral is stored as a USD value and converted to tokens based on the latest price.
To ensure that profits for all short positions can always be fully paid out, the contracts will pay out profits in the stablecoin based on a price of 1 USD or the current Pyth/Band price for the stablecoin, whichever is higher.
For swaps using the depegged stablecoin, the spread from 1 USD to the Pyth/Band price of the stablecoin will similarly apply.
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