Prediction markets and perps exchanges are having their moment right now.
At Superposition, we’ve been hard at work on a new stack that we think will take this space to the next level.
🧵
Passport is a new UTXO-based order matching rollup built using @Arbitrum Stylus. It powers Longtail Pro, our upcoming spot and perps DEX.
Passport settles trades instantly, with no block confirmations, being almost entirely intent driven.
Let’s dive into how it works!
Trading is completely offchain, and trades are combined using in-browser signatures. Trades are only sent on-chain when a user wants to withdraw.
This method keeps costs zero for traders, only costing gas fees during withdrawal. Privacy is built in, using a privacy pools-style method, supporting a private orderbook.
Partial filling is possible, and a stack language is accessible in the rollup. We aggregate the rollup calldata, allowing the users to post them on-chain themselves.
This approach is similar to a Coincidence-Of-Wants auction, except we support mixed execution.
Depositing is possible from any chain, and withdrawal is almost instant, powered by @EspressoSys.
The code was written using functional programming techniques made possible only by Stylus. @Arbitrum Stylus is the only serious way to write compute-heavy code on-chain, netting gas efficiencies of 90% in some cases.
We use it for compression of the calldata, using a Solana-style encoding format. Our Stylus contracts are run on RISC-V, and this way are run on chains that aren’t Arbitrum-native using ZK proofs.
So, what does this mean for you?
It means a web2 experience, in web3, with no bridging friction, and settlement almost anywhere.
It means not needing to bridge your assets, then waiting for a deposit to complete. A private trading experience where trades are private with an orderbook, where a spot trade can be followed up with perps, into a prediction.
This is something we’re super excited about, and can’t wait to show the world!
If you made it to the end, we hope you enjoyed this thread 🫶
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