Original text: Econia 101: A Breakdown of the On-Chain Order Book for Aptos》

Author: Econia Labs

Compiled by: Odaily How about

This article introduces Econia, an order book-based DEX on Aptos, which provides a high-performance, atomic settlement and permissionless global access trading experience for DeFi. It aggregates liquidity into a digital market, with a trading experience similar to traditional exchanges, while achieving the advantages of decentralization and user asset custody. Econia’s atomic matching engine performs fast transactions, reducing latency and reducing the risk of MEV attacks. For traders, developers, and institutions, Econia delivers the benefits of liquidity, efficiency, and innovation.

The following is compiled by Odaily.

What is Econia?

Econia is an on-chain order book DEX running on the Aptos blockchain. Engineered for high performance, atomic settlement, and built on providing permissionless global access to the market, Econia leverages Aptos optimistic concurrency model to provide users with a seamless and efficient trading experience.

Designed to aggregate liquidity from around the world into a single digital market, Econia is the core backend system for DeFi and is invisible to users unless they are DeFi developers.

Why choose Aptos?

Aptos’ optimistic concurrency model allows transactions to be executed in parallel, enabling the blockchain to execute tens of thousands of Move transactions per second. Aptos enables its block-level STM execution model to process large numbers of transactions in a fraction of a second by leveraging the preset ordering of transactions and incorporating Software Transaction Memory (STM).

Background on Econia Labs

Econia Labs was incubated out of the inaugural Aptos Hackathon 2021, where it won prizes. Following the Hackathon, Econia Labs was selected for the initial Aptos Accelerator Program cohort and received $6.5 million in seed round investment, led by Dragonfly, with participation from Lightspeed Faction, Wintermute Ventures, Hudson River Trading, Flow Traders, Aptos Labs and others .

Econia Labs team members have diverse backgrounds from prestigious institutions such as Stanford University, Goldman Sachs, NASA, Garmin and The Block, and are focused on developing the top-level on-chain order book for the Aptos blockchain.

Why choose Econia over centralized exchanges or AMMs

Unlike automated market makers (AMMs), order books provide a trading experience similar to traditional trading venues such as Coinbase Pro or Binance, providing users with access to trade from non-custodial wallets. By combining the advantages of centralized exchanges (CEXs) (efficient price discovery and minimal slippage) with the advantages of decentralized exchanges (DEXs) (decentralization, permissionless and custody of user assets), the result is a A trading experience that combines efficiency, fairness and decentralization.

Econia’s matching engine is atomic, meaning it performs all the steps required to settle a market order in a single trade. For example, when a user decides to buy or sell a digital asset at the best price the market has to offer, Econia matches their order with a limit order (ask or bid) from another market participant, updating the position on the order book, and transfer assets between parties, all in a single transaction. This kind of single-step transaction would not be possible without the optimistic concurrency of the Aptos blockchain.

How Econia benefits traders

The order book is a fundamental financial primitive that integrates liquidity into a global venue that is shared by all market participants, regardless of how they are integrated. For Econia in particular, its atomic matching engine reduces computational overhead, resulting in faster transaction execution.

Econia processes and executes multiple orders in parallel, reducing system overhead and providing a more responsive trading environment. Econia’s ability to process multiple orders simultaneously also means it can handle higher transaction volumes. Because Econias matching engine performs all the steps required to settle a market order in a single trade, trading is much faster than with traditional decentralized exchanges because there is no need to wait for multiple trades before a trade is considered final. Get confirmation.

Overall, Econia’s atomic matching engine provides an efficient trading experience. Users can trade their assets efficiently without worrying about delays or unexpected results, while reducing the risk of MEV attacks.

How Econia benefits developers

Building and testing infrastructure can be a daunting task, but Econias open source projects enable innovative players in the crypto space to build, adapt, and scale. Econia’s hyper-parallel order book execution and settlement infrastructure provides key partners with a competitive advantage in the DeFi space.

Econia’s API and SDK provide direct access to the Econia protocol, allowing virtually any developer to create, access, and build on top of this innovative infrastructure. Econia Labs is also finalizing an open source reference front-end, and soon anyone will be able to fork it and run their own custom trading dashboards, providing users with even more access to Econia.

How Econia Benefits Organizations

Because Econia aggregates liquidity into one global venue, institutions can trade at ultra-low spreads across all fronts with counterparties from all levels of the retail space. Additionally, Econia’s infrastructure is asset agnostic, allowing institutions to trade heterogeneous asset classes like derivatives or options that may not be available on centralized exchanges or traditional markets.

in conclusion

Econia is a hyper-parallel on-chain order book running on the Aptos blockchain. Compared to centralized exchanges and automated market makers (AMMs). Econia offers advantages to traders, developers, and institutions, and key players in the DeFi space can benefit from the liquidity, efficiency, and innovation provided by Econia.