Off-chain Orders

In the current Cardano dApps, one order is usually represented as 2 on-chain transactions. We can call the first transaction an order placement and the second one a verification + execution. Thus the end user a) pays for order execution (so-called “batcher” fees) and b) pays network fees twice. This is not ideal.

Green Orders

To enhance the efficiency and cost-effectiveness of the off-chain execution system, as well as to significantly diminish the cost per order, we are streamlining the process by eliminating the necessity for on-chain order placement. Instead, we encode these orders into a message, which is then relayed off-chain to the designated executors. These off-chain orders, referred to as "green," incur zero on-chain overhead. The message's structure is depicted below:

$$OrderBody = OrderParams * Nonce$$

$$Message = OrderBody * σ$$

The user authorizes the order by signing its contents and attaching the proof $σ$. $OrderParams$ – parameters of the order, e.g. quote and base asset, price, etc., $Nonce$ – monotonically increasing counter to prevent replay attacks.

Autonomous Account

The Autonomous Account is a separate UTxO with scripts and works as a trading account on a centralized exchange. However, the AA is an on-chain entity so the custody of users' funds is not transferred to a third party after making a deposit.

The purpose of AA is to facilitate off-chain order placement while ensuring secure access and manipulation of user funds during trade execution.

The AA's scripts are responsible for verifying the authenticity and integrity of each order, confirming that the execution terms match the user's expectations (e.g., price, volume, and timing), and ensuring that the transaction complies with the overarching rules of the Temporal Liquidity Book framework.

This approach reduces the blockchain's transactional load, as well as leads to lower fees per order and faster execution times. Furthermore, the AA's transparent operation model ensures that users have full visibility into how their orders are executed, addressing concerns related to trust and security.