Off-chain Orderbook

An off-chain order book (Matcher) system manages buy and sell orders outside the blockchain. This approach follows the same principle as centralized exchanges, enabling faster order processing and matching. By handling order management off-chain, EVEDEX achieves higher performance and lower latency, which are critical for efficient trading.

Matcher’s responsibilities include:

• Order Matching: Matches buy and sell orders and places them in the order book.

• Essential Risk Management: Ensures orders meet risk criteria before execution.

• Real-Time Updates: Provides live data on the state of the order book and order matching events via WebSocket.

We provided a detailed description of the Matcher’s specifications on this page.

Interaction Between EVEDEX Core Engine and Matcher

The exchange’s backend communicates with the Matcher through API requests and Websocket. Here’s the workflow:

1. A user submits an order request signed by his private key.

2. The backend performs basic feasibility checks, such as verifying sufficient funds, ensuring the order meets minimum position requirements, and verifying the wallet’s signature.

3. The backend forwards the validated request to the Matcher.

4. The Matcher verifies the order signature, processes it, updates its status (e.g., executed, partially executed, pending, or canceled), and records it in the database.

5. The updated order status is relayed back to the backend.

6. The filled order will be recorded on the blockchain based on the demand from the backend.