Beast Implementation Technology — Hybrid Order Book AMM Design

For decentralized exchanges (DEX), order book technology is crucial. An efficient order book system can process orders quickly, reducing transaction delays and slippage, and enhancing the user experience. Low latency and high throughput order book technology are essential for user satisfaction.

Currently, among the decentralized exchanges (DEX) we are familiar with, there are mainly the following types of order book implementations: on-chain order books, off-chain order books, and automated market makers (AMMs).

These different order book implementations each have their advantages and disadvantages, suitable for different use cases and needs. The AMM model excels in enhancing liquidity and simplifying user operations, while off-chain order books offer more efficient trading experiences and complex order types. On-chain order books emphasize decentralization, achieving complete decentralization and transparency, with all order operations publicly verifiable.

As the world’s first BTC L2 DEX, to meet the various use cases and needs of users, Beast has introduced an innovative hybrid order book AMM design.

Beast’s exchange model integrates fully on-chain trading venues and risk engines at the protocol level, with an off-chain sequencer at the top layer, forming a hybrid order book — AMM DEX. The on-chain trading and risk engines include Beast’s core products, such as spot and perpetual markets. The sequencer acts as a high-performance order book, matching inbound orders to the protocol layer with ultra-low latency.

Beast’s on-chain clearinghouse serves as a hub, integrating perpetual markets, spot markets, collateral, and risk calculations into one unified system. The fusion of AMM and order book forms the foundation of a unified trading stack, with vertically integrated DeFi primitives as its on-chain core products. Each component of the Beast trading stack is merged into a powerful on-chain trading platform. The limitations of isolated DEX models popular in existing DeFi protocols are minimized, while their advantages are amplified within a single trading venue. The resulting hybrid order book-AMM DEX maximizes advantages in performance, flexible liquidity expression, and a diversified product suite.

Beast’s hybrid order book AMM design combines the strengths of order books and AMMs, providing users with more varied trading options and a more efficient trading experience.

The four major significances of Beast’s creation:

1. The world’s first BTC L2 ecosystem truly decentralized options DEX.
2. Asset on-chain, fully transparent fund flows.
3. More convenient interaction for users with the Web3 world.
4. Elimination of intermediaries through smart contracts, reducing financial transaction costs and friction.