Bullet
  • Introduction
  • Bullet Network
    • Design Goals
    • Architecture
      • Sequencer
      • Full & Light Nodes
      • Zero-knowledge Virtual Machine
      • State Database
      • Data Availability
      • Bridge
      • Oracle
      • Gas & Paymaster
      • Wallet Abstraction
    • Network Specifications
    • Build on Bullet
      • REST/WS APIs
      • BulletSVM
    • Audits
  • BulletX (Exchange)
    • Products
    • Architecture
      • Orderbook
      • Unified Margin Engine
      • Lending Engine
      • Liquidation
      • Insurance Fund & ADL
      • Funding
      • Price Indices
      • Order Types & TP/SL
      • Fees
      • Vaults
    • Contract Specifications
  • Tokenomics
    • Bullet Token
    • ZEX Token Migration
  • FAQs
    • Frequently Asked Questions
  • Campaigns
    • Testnet Trading Cup
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  • Overview
  • Sequencing Rules
  1. BulletX (Exchange)
  2. Architecture

Orderbook

The core engine of price discovery on Bullet.

PreviousArchitectureNextUnified Margin Engine

Last updated 1 month ago

Overview

The exchange operates with an on-chain orderbook that is enshrined directly into the runtime of the rollup. Unlike platforms that run an off-chain orderbook, Bullet's matching engine runs as part of the rollup’s core logic, making the entire process transparent and verifiable.

All matching logic is executed on-chain and proven using zero-knowledge proofs. This allows every node in the rollup network to independently verify that trades are matched correctly, without needing to trust a centralized operator.

By embedding the orderbook and matching engine into the rollup itself, the system ensures that trade execution is consistent, tamper-proof, and provably correct.

Sequencing Rules

To encourage competitive liquidity and sustainable market microstructure, we mandate opinionated rules at the network level, namely that maker cancels and post-only orders are prioritised over taker orders like limit and IOC. This allows tight liquidity to be posted without excessive interference from arbitrageurs, which often leads to a FIFO latency race in most exchanges.

Application Specific Sequencing