Thread by @HubbleExchange

Introducing Hubble Exchange: a Purpose-Built App-Chain for Perps

A trustless & composable trading system for perps. Hubblenet is a perp-specific chain; customized to embed a fully Decentralized Limit Order Book & its Matching Engine

Testnet: testnet.hubble.exchange

Overview👇

The chain builds upon Avalanche’s subnet-evm repo, and we deploy our solidity smart contracts to control the logic for deposit/withdraw margin, place/accept orders, pay fees, & liquidations.

We customized the block-building process, integrating our order-matching system for decentralized validation. As users place orders, data is indexed locally in the validator node with details on open orders, positions, margins, pending funding, & margin ratio.

We also designed a RunBuildBlockPipeline hook that fetches data, evaluating open positions for liquidations, running the matching engine, and relaying operations before the transaction bundling process continues.

To improve efficiency, we’ve implemented stateful precompiles, like Ethereum’s cryptographic primitives, enabling constant gas costs even as new markets/collateral are added. This shifts complex computations to stateful precompile, making the system more scalable.

Hubble Exchange supports multiple order books, creating a platform for private orders, just-in-time orders, gasless orders & the future potential of broadcasting orders on an agnostic data availability layer. This results in shared liquidity & an emerging validator economy.

We chose to use USDC as the gas token on Hubblenet, which means validators will be earning real yield. This choice also simplifies dApp building on Hubblenet, making it more ecosystem-agnostic and simplifying UX for traders.

On the subject of throughput, we’ve moved heavy operations to GoLang, so throughput is only constrained by the LevelDB, offering potentially massive tx rates. But we’re committed to sustainable growth, mindful of the impacts of block size on decentralization.

The hubblenet also integrates composability, the cornerstone of #DeFi. As an EVM chain, it enables decentralized leveraged tokens, automated hedging strategies & algorithmic trading to be built on top. Hubble Exchange DAO is eager to foster such innovative projects.

By customizing the block-building process of our chain and embedding a Matching Engine within it, we have achieved truly Decentralized Matching. This is a monumental feat, representing a significant advancement in the realm of on-chain perps.

We are only beginning to scratch the surface of the cutting-edge features and perp-specific optimizations that are unlocked at the intersection of app-specific chains and perpetuals

Hubble Exchange proves that on-chain trading systems can be decentralized without compromising on UX, cost, or latency. This is a shift from the traditional perception of on-chain systems implying compromises.

Hubblenet is primed to be the foundation of an unparalleled on-chain perps experience. Welcome to the next generation of on-chain perpetuals. Welcome to Hubblenet.

Read the full technical specification on Hubble Exchange here: medium.com/hubbleexchange…