📚Longtail Orderbook Specs
A Universal Shared Liquidity hub
Last updated
A Universal Shared Liquidity hub
Last updated
In the second stage, the AMM will have its positions bridged to the Decentralised Limit Order Book on the Layer-3 as bids and asks. This will be facilitated with a specific on-ramp reducing the friction for end users. This bridge will be supported with options. This will ensure sufficient liquidity for the order book on day one to bootstrap the protocol.
The decentralised limit order book will be launched on the Superposition Layer-3, and the AMM liquidity as well as collected interest from Super Assets will be migrated to the chain. The architecture will allow for the permissionless creation of AMMs and other types of financial products built on the order book liquidity, leveraging the superior performance and execution speed of the orbit chain.
The application will benefit from dedicated throughput with application-specific contracts. Account Abstraction (AA) will be leveraged to facilitate non-interactive transacting from the user’s perspective. Stylus will benefit the application with a higher performance and lower cost. A user-centric on-ramp leveraging AA will reduce the friction of using the DEX, taking the signing process out of the interaction UX with aggressive session key use. Entrypoint AA contracts are utilised with a Session Key signing key embedded in the browser. AA accounts facilitate margin calls, leveraging a calldata-heavy pattern seen with flash loans transparent to the end user. When margin is called on an account, live actors leveraging the bundler can call the code to transfer ownership of the assets to the lenders, for a fee. The UX for the wallets enables custody-free spending on margin
Fees are denominated in whatever assets the user has, based on the USD conversion rate at the time, with a preference for what the paymaster is willing to accept, and what’s liquid. To do so, an on-chain oracle is used to source data from alternative chains, weighted against data from the app-chain itself. This information is timed and also used to discover margin calls amongst other bits of information.
