Order Book System

A Decentralized Exchange (DEX) based on ZK-rollup can be operational. However, efficiency still needs improvement when dealing with a high volume, high-frequency order book. Each action requiring a blockchain transaction consumes data storage. To enhance the efficiency of the matching model, DeGate has designed "Batch Spot Trade," a mechanism intelligently bundling and compressing many transactions, compressing data before adding it to the Layer 2 block. Afterward, it generates a proof of validity cryptographically and submits it to the Ethereum mainnet.

To ensure the system's accuracy, Batch Spot Trade tracks the token balances between trading users and matched trades. The illustration below provides a detailed explanation, calculating the sum of three tokens (ETH, USDC, USDT) to ensure the sum of changes in token balances for all users is always zero.

Built using Zero-Knowledge (ZK) technology, it is a decentralized order book trading protocol that maintains order book trading patterns and order matching on Layer 2 and settles on Layer 1 through ZK rollup. The OpenBRC protocol aims to achieve the following:

• Order book-style orders (buy/sell orders)

• Gas-free transactions

• Millisecond-level transaction experience

• No splitting or packaging fees

• Transfer and use with linked wallets

• More convenient user interaction steps

• Token block selection

The results of OpenBRC's design provide a decentralized trading experience similar to Centralized Exchanges (CEX) in the following ways:

• Instant order cancellation, matching the speed of canceling orders on centralized exchanges

• No cancellation fees for orders

• No charges for placing limit orders—including transaction fees and on-chain gas fees

These attributes make OpenBRC suitable for both general retail traders and professional market makers requiring instant processing of large orders.