warp(x)

warp(x) is a fully on-chain hybrid orderbook exchange with AMM implemented in Rust

Features

Those are the features implemented in warp(x) runtime

Hybrid Orderbook

Pool is always located at the middle of bid/ask orderbook where the current price of pair is made and eliminating the spread between those two. As a result, order is matched at the better price, which is taking instant arbitrage, the market provided.

Process of matching order

• When user place an order, order is matched on pool
• If the price(of the pool) reached the lowest ask or highest bid, order is matched on orderbook.
• This process repeats until the order is fully filled

Reward Distribution

• Takers Pay Makers Earn
• No matter how(e.g limit order or add liquidity to the pool) user provides its liquidity to the pool, will get rewards of trading fee

NOMT

the Nearly-Optimal Merkle Trie Database

• Storage layer
• Since fully on-chain matching order requires large amount of storage io, it is important to make cost efficient as much as possible. warp(x) applied NOMT

Multi Asset

• Since warp(x) is based on PolkadotSDK, which is the best framework for composability, XCM is supported natively. Other assets like DOT, EVM-compatible assets(e.g ETH, WBTC) are bridged via XCM.

Pre-Confirmation

Inspired by Flashbots' Flashblocks technology on Ethereum L2

• Real-time Block Building: warp(x) implements a pre-confirmation system that provides real-time visibility into block construction through WebSocket subscriptions. Users can track their transactions being included in blocks before final confirmation.

• Incremental Block Building: Blocks are built incrementally as sub-blocks, allowing for faster transaction confirmation visibility. This approach significantly reduces the time users need to wait to know if their transactions will be included in the next block.

• Instant Trade Visibility: Unlike traditional blockchains where users must wait for block finalization, warp(x)'s pre-confirmation system enables near-instant feedback on transaction inclusion, improving the trading experience especially for time-sensitive operations.

How it works

• During block production, the proposer builds blocks incrementally as sub-blocks at regular intervals (configurable preconf_block_time)
• Each sub-block payload is broadcasted via WebSocket to subscribed clients in real-time
• Users can subscribe to the WebSocket endpoint to receive pre-confirmation updates about their transactions
• This allows applications and users to react to transaction inclusion much faster than waiting for final block confirmation

Private Trading

• With the power of ZKP, warp(x) enables users to trade without revealing their identity on-chain. That said, only the token and its amount of order is revealed
• This feature is still work in progress

Milestones

Phase 1

• Pallet Hybrid Orderbook
• Support Limit Order & Market Order
• Support Stop-Limit Order & Stop Order

Phase 2

• Pre-Confirmation
• Future Trading

Phase 3

• Integrates multi-assets such as EVM-compatible or other parachains' assets

Phase 4

• Private Trading(e.g Dark Pool)
• Integrates NOMT DB

Why Polkadot?

Polkadot offers several compelling advantages for our project:

1. Robust Shared Security: Polkadot's unique shared security model ensures that all parachains benefit from the collective security of the entire network. This approach significantly enhances the resilience and integrity of our chain, providing a solid foundation for our exchange.

2. Cost-Effective Scalability: By leveraging Polkadot's architecture(a.k.a agile coretime and elastic scaling), we can achieve high transaction throughput at lower costs compared to traditional roll-up solutions. This efficiency allows us to offer competitive fees while maintaining optimal performance which enables fully-on-chain trading.

3. Composability: Through its native Cross-Consensus Message (XCM) protocol, Polkadot enables seamless interoperability between different parachains and even external networks such as Ethereum and Solana. This composability is crucial for creating a truly interconnected and efficient ecosystem.

These features make Polkadot an ideal platform for building our hybrid orderbook exchange, enabling us to create a secure, scalable, and interconnected trading environment.

What we want to achieve on Polkadot:

• Fully On-Chain Trading: Unlike other centralized exchanges, warp(x) will not have any server or backend. Everything is executed on-chain, ensuring transparency and trustlessness.
• Composability: warp(x) will be fully integrated into the Polkadot ecosystem, allowing for seamless interoperability with other parachains and even external networks.
• Security: With the shared security of Polkadot, warp(x) will benefit from the security of the entire network, ensuring that the exchange remains secure even in the face of potential attacks.
• High Liquidity: warp(x) will provide high liquidity for trading pairs, making it easier for users to buy and sell assets.