🔍Architecture

Initial Architectural Framework

In this session, we will explain how DeltaDeFi can be designed to fulfill 3 core axioms of DeFi high-frequency trading:

1. Zero order management cost

2. Instant order finality

3. Full non-custodial

Figure 1: Initial Architectural Framework

The initial architectural framework graph above demonstrates how the 3 axioms are fulfilled. Every user enters the application by depositing into account scripts. Since UTxOs entered the accounts, every user can submit a place order instruction to DeltaDeFi, which would select unused UTxOs in users' accounts to build transactions. However, unfulfilled orders are not submitted to the blockchain yet, therefore, no transaction is on-chain yet and hence there are no transaction execution costs incurred. Similar logics apply to cancel orders, hence the architecture supports zero-cost order cancellation and modification.

Since the application controls all status and immediate spending power of account UTxOs, upon orders, are fulfilled, DeltaDeFi can assure both users that their order instructions are successful prior to transactions being on-chain. Hence, this achieved instant order finality for users.

Everything described here is non-custodial as DeltaDeFi has no discretion on users' funds, guarded with Cardano smart contracts.

System Architecture Overview

Since the transaction building component can be abstracted, both frontend clients and programmatic access API clients can interact with the same set of API endpoints with such a design. DeltaDeFi can allow high-frequency traders to integrate trading on Cardano DeFi with their proprietary algorithm natively. A potential architecture overview that could support such a system is demonstrated below.

Figure 2: DeltaDeFi System Architecture Overview