Blockchain Liquidity Protocol Architecture and Consensus Mechanism

20min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

The chapter explores the architecture of a blockchain liquidity protocol tailored for order book exchanges, emphasizing the need for an active system to handle dynamic order book data efficiently. It discusses validators, consensus mechanisms, non-custodial processes, and the importance of fraud proofs in ensuring system integrity. The conversation also covers the integration process of Elixir with other platforms, detailing user experience, backend processes, LP tokens, and the trading algorithm employed for liquidity provision.

In today's interview, Philip, the founder of Elixir, discusses how his project aims to democratize access to liquidity provisioning on order book exchanges. He explains Elixir's unique architecture as a modular DPOS blockchain that uses a market making algorithm to allow anyone to supply liquidity to order books in a trustless fashion. Philip dives into the technical details of how Elixir pulls order book data from exchanges, comes to consensus, and posts orders back to the exchanges. The conversation also touches on the Apothecary liquidity provisioning program and Philip's conviction that on-chain order books will prevail over AMMs long-term for serious traders.

- -

Follow Philip: https://twitter.com/0xphilip

Follow Sam: https://twitter.com/swmartin19

Follow Ren: https://twitter.com/purplepill3m

Follow Blockworks Research: https://twitter.com/blockworksres

Subscribe on YouTube: https://bit.ly/3foDS38

Subscribe on Apple: https://apple.co/3SNhUEt

Subscribe on Spotify: https://spoti.fi/3NlP1hA

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

- -

Wormhole is a decentralized interoperability platform powering multi-chain applications and bridges. It provides developers with access to liquidity and users on over 30 leading blockchain networks, enabling use cases in DeFi, data queries, and governance. The platform is trusted by teams like Uniswap and Circle and, to date, the platform has facilitated the transfer of over 35 billion dollars through over 850 million cross-chain messages.

Claim your unique Wormhole NFT at

https://wormhole.com/0xresearch2-6532

- -

Pear is an innovative pair-trading exchange built on top of SYMMIO. Users can trade trending narratives with one click, from bluechip narratives such as long BTC, short ETH, right through to WIF vs BONK. SYMMIO’s intent-centric architecture enables deep liquidity, sourced off-chain and brought on-chain, and combined with Pear, have democratized access to complex trading strategies typically reserved for institutional traders.

Start trading today at: https://www.pear.garden/

- -

Timestamps:

(0:00) What is Elixir?

(8:23) Elixir Architecture

(24:38) Wormhole Ad

(25:16) Pear Ad

(25:41) Universal Order Book Cold Start Solver

(34:38) Integration Strategy & Permissionless Onboarding

(49:09) Validator MEV & Malicious Behavior

(53:45) Onchain DEX Architecture Endgame

- -

Resources

https://www.elixir.xyz/

https://twitter.com/elixir

- -

Check out Blockworks Research today! Research, data, governance, tokenomics, and models – now, all in one place

Blockworks Research: https://www.blockworksresearch.com/

Free Daily Newsletter: https://blockworks.co/newsletter

- -

Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Dan, Sam, and our guests may hold positions in the companies, funds, or projects discussed.