RWA Orderbook DEX
Last updated
Last updated
The RWA (Real-World Asset) Orderbook is a decentralized on-chain exchange that looks like a regular centralized exchange but operates as a decentralized exchange. It facilitates the ability to place limit order trades of tokenized RWAs without custodying user funds. Users can securely place buy and sell orders at specific prices for RWA tokens in a trustless environment without the need for intermediaries, thanks to the smart contract architecture of the RWA orderbook.
The RWA Orderbook can support a wide variety of asset classes, including property, commodities, and other tokenized assets, with all trading and transaction settlement occurring directly on the Mavryk blockchain.
Decentralized Trustless Trading: At its core, the RWA Orderbook is fully decentralized. Unlike traditional systems, where a central authority manages trades and holds user funds, the RWA Orderbook uses smart contracts to ensure trustless, automated trading and never has access to user funds. All trade executions occur on-chain, ensuring continuous market activity without human intervention.
Autonomous Order Matching: Once an order is placed, funds are securely stored within the contract until matched with a corresponding order. Orders are matched starting with the lowest sell price of a Sell Order and the highest buy price of a Buy Order, continuing until no suitable matches remain, just like a centralized exchange. This reduces delays and ensures a transparent matching process.
Buyers can also request a refund for any excess funds remaining after an order is matched. For example, if there is a price discrepancy between the highest buy price and the lowest sell price, the buyer can receive a refund for the unspent funds.
Secure Asset Custody: All funds involved in trading are securely held within the smart contract. Users retain full control of their assets until a trade is successfully matched. No one can access or withdraw funds except for the asset owner or in the case of a valid/canceled trade, reducing the risk of misappropriation or fraud.
Transparency and Auditability: The entire process of placing and matching orders is fully transparent and trackable on the blockchain. Each trade is settled & recorded directly on the Mavryk blockchain in real-time, allowing any user to openly track and audit the exchange's operations. This built-in transparency fosters trust and provides users with complete visibility into market activity.
RWA Dividend Yields: A unique feature of the RWA Orderbook is that users who place RWA Sell Orders continue to receive a yield on those tokens until they are traded. This yield is calculated based on a snapshot taken at the time of placement. This ensures that users can still benefit from the underlying asset’s yield-generating capability, even while their tokens are listed for sale.
The RWA Orderbook ensures that users can trade tokenized assets with complete security, knowing that their funds are protected until a trade is successfully executed.
By eliminating the need for intermediaries through the use of smart contracts, the system not only improves efficiency but also reduces transaction costs.
Additionally, the decentralized design mitigates the risks often associated with centralized exchanges, such as hacking or mismanagement of user funds.
The order matching process in the Mavryk RWA Orderbook works as follows:
Matching Logic: The system matches orders based on price. The highest buy order is matched with the lowest sell order.
Order Fulfillment: Once a match is found, the contract calculates the fulfillment amount (based on the unfulfilled amounts of the buy and sell orders) and processes the trade.
Unspent Funds Refund: If a buy order is partially fulfilled, the user can request a refund for the unspent funds.
Fees: Trading fees are deducted from the base pair only on matched transactions.
Conclusion
The RWA Orderbook provides a secure, efficient, and transparent platform for the decentralized trading of tokenized real-world assets. The exchange's robust smart contract entry points allow administrators to manage key aspects of the system, while users can trade RWAs in a completely trustless environment. The order matching and asset custody mechanisms ensure that trades are executed fairly, securely, and transparently.
By utilizing smart contracts, the RWA Orderbook opens up new possibilities for tokenized asset markets, offering liquidity and accessibility to a wide range of users.
