Exchange

Fair execution at a true market price. No slippage. No MEV.

Table of Contents

    • Fair execution at a true market price. No slippage. No MEV.

      The Deepwaters exchange uses a novel system which incorporates both on-chain and off-chain elements to fulfill trades, which execute at a guaranteed price and with zero slippage. Highlights of the Deepwaters exchange include:

      1. Fair-market price quotes

      2. Increased scalability to support large trades and institutions

      3. Elimination of front running by both privileged insiders and MEV-enabled traders

      4. Support for native cross-chain swaps

      5. Elimination of MEV by removing the attack vector

      6. Support for all current regulatory/compliance requirements

      Deepwaters provides tools for Market Orders, Stop-Loss Orders, and Limit Orders.

      Stop-Loss and Limit Orders function similarly to other exchanges and are settled on-chain. For Request for Quote (RFQ), Deepwaters uses a time-limited batch settlement mechanism to create an OTC-like trading environment.

    • The New Request for Quote

      Traders are provided a price quote that is guaranteed within a window of time. Think of this like the countdown clock for hot-ticket items in the shopping cart of your favorite online retailer. You may choose to accept or reject this quote.

      How is Price Determined?

      Traders are provided a price quote that is guaranteed within a window of time. Think of this like the countdown clock for hot-ticket items in the shopping cart of your favorite online retailer. You may choose to accept or reject this quote.

      1. The following information is provided by the user via the exchange interface:

        1. Asset (A) they are selling

        2. Quantity of asset (A) they are selling

        3. Asset (B) they are buying

      2. The Deepwaters Fetch RFQ [link] then returns a time-limited quote price.

        1. Price discovery is managed by a decentralized oracle, which samples CEX (bid/ask/last) and DEX prices off-chain.

        2. Size impact is determined by the current mean of CEXs and non-invariant DEXs (fair market) prices.

      Fulfilling orders fairly

      If the quoted price is accepted, you will be guaranteed execution at that price and the order will be settled within a short delay. This period of delay is chosen by the trader and determines the RFQ Trading Fees [Link].

      Functionally, RFQs are settled as follows:

      1. When a user accepts the quoted price, they sign a gasless transaction, which is sent to the Deepwaters Asset Manager.

      2. RFQs are matched by the Arbitraging Counterparty:

        1. Orders are placed into a Trading Mempool [link], which acts as a delayed settlement queue for all orders.

        2. During the trading window, orders are matched together. Deepwaters AI determines the most efficient way to fulfill the greatest possible amount of these orders by meeting coincidences of wants.

        3. Orders are matched against the rebalancing needs of the ZRB exposure token.

        4. Orders are matched by respondents to Open Outcry messages (takers) who advertise any remaining unmatched/un-arbitraged orders on the platform. The Arbitrage profits are then split with those respondents.

      3. Any order(s) remaining un-matched by the Arbitraging Counterparty are settled by our “underwriters” – liquidity providers.

      4. LP’s are paid on every order, regardless of whether their liquidity is used directly.

    • The Fairer Orderbook

      Deepwaters ensures the immutability of the order flow. When you place an order, it gets equal priority with all other orders based solely on the sequence in which they are placed. No one can rearrange orders or act on orders before they are either executed or placed on the public order book.

      We make the market order button work. You can safely place a market order without worrying about adverse selection, front-running, or privileged counterparties changing the order book in response to seeing your order (since there are none on Deepwaters and they couldn't see your market order until it hit the books anyway).

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