Prerequisites & Advantages of Choosing custom L3
Last updated
Last updated
The main goal of EVEDEX is to provide users with the same broad range of features as centralized exchanges (such as Binance, Bybit, OKX, and others), while offering more transparent trading rules.
EVEDEX's decision to build on a Layer 2/3 solution stems from the need to overcome the limitations of existing blockchain infrastructure while maintaining security and decentralization. By leveraging an Arbitrum Orbit AnyTrust Layer 3 network that settles over Arbitrum Nova with a custom Data Availability Committee (DAC), we can process thousands of trades per second almost instantly and at a fraction of the cost compared to the main Ethereum network. This means users can trade faster, cheaper, and more frequently, whether they're moving $50 or $50,000.
«For projects like EVEDEX it makes total sense to have their own chain. The ability to customize block times, block gas limit, or base fee, among other parameters, gives their project an edge against the competition as they can build a more optimized chain for their needs.
We have seen protocols doing a two-step approach, yet EVEDEX has, from day one, a clear vision and roadmap that makes having their own chain the best choice!»
Javier Donso, Head of Developer Relations at
«Choosing the right blockchain for a hybrid exchange is a task that requires balancing the trade-offs between blockchain speed, decentralization, and the complexity of development and infrastructure support costs. Considering the outlined requirements, the most optimal solution appears to be based on Arbitrum Orbit in AnyTrust mode, which allows for the deployment of a secure blockchain that meets the specified requirements with minimal trust assumptions»
After extensive analysis of various L2 technologies—including OP Stack, Arbitrum Orbit, Polygon CDK, and ZK Stack—we concluded that building our own AnyTrust Layer 3 network using Arbitrum Orbit is the optimal solution for EVEDEX.
This decision was driven by several key advantages:
Enhanced Scalability & Cost Efficiency By implementing an AnyTrust Layer 3 (L3) chain over Arbitrum Nova, we benefit from significantly reduced transaction costs and increased throughput. The AnyTrust model uses a custom Data Availability Committee (DAC) to manage data off-chain securely, reducing the reliance on posting all data to Ethereum Layer 1. This results in lower fees and higher transaction speeds, which are critical for a high-frequency trading platform like EVEDEX.
Customization & Flexibility Arbitrum Orbit allows us to tailor our Layer 3 chain to our specific needs. We can customize numerous components such as gas fees (including using a custom gas token), governance structures, and execution environments. This flexibility enables us to optimize the chain for our perpetual futures trading platform without compromising on security or interoperability.
Security through Layered Trust Models Settling our AnyTrust L3 chain over Arbitrum Nova provides a robust security framework. While the AnyTrust model introduces a trust assumption via the DAC, settling over Arbitrum Nova ensures that we inherit the security properties of a mature Layer 2 network. Additionally, our custom DAC allows us to control the data availability mechanisms, enhancing the overall security and reliability of our platform.
Arbitrum Ecosystem Integration Arbitrum offers a vibrant ecosystem with significant liquidity and a strong developer community. Building on Arbitrum Orbit over Arbitrum Nova allows us to leverage the same mature technology stack powering Arbitrum's networks, benefiting from continuous improvements and updates. This integration facilitates collaboration, innovation, and user acquisition within a well-established ecosystem.
Enhanced User Experience through Account Abstraction Implementing Account Abstraction (AA) technology enhances user interaction by providing greater flexibility and security. Arbitrum Orbit supports advanced features like gasless transactions, flexible fee payments (including the use of custom gas tokens), and enhanced security configurations. These features significantly improve the user experience, making our platform more accessible to a broader audience.
EVM+ Compatibility With Arbitrum Orbit's support for EVM+ compatibility via Stylus, we can deploy smart contracts using Solidity, C, C++, and Rust. This allows us to incorporate the latest and greatest in Ethereum scaling technology without migrating away from the languages and toolchains we are already using.
Decentralization Options Arbitrum Orbit allows us to choose between Rollup and AnyTrust protocols, reflecting prioritization choices within the blockchain trilemma (scalability vs. security vs. decentralization). By selecting the AnyTrust model for our Layer 3 chain, we optimize for lower fees and higher transaction throughput, which is ideal for our high-frequency trading platform.
Interoperability & Future-Proofing Our AnyTrust L3 chain over Arbitrum Nova ensures seamless interoperability with other chains within the Arbitrum ecosystem and the broader Ethereum network. This interoperability is crucial for future integrations, cross-chain functionalities, and ensuring that our platform remains adaptable to evolving blockchain technologies.
Gleb Zykov, CTO and co-founder of .
