Hybrid Orderbook AMM Design

SolBank's exchange model integrates a fully on-chain trading venue and risk engine at the protocol level, complemented by an off-chain sequencer to establish a hybrid orderbook-automated market maker (AMM) decentralized exchange (DEX). The on-chain trading and risk engine encompass SolBank's core offerings, spanning spot, perpetuals, and the money market, governed by the SolBank protocol smart contracts on the Solana network.

Operating as a high-performance orderbook, the sequencer efficiently matches incoming orders with minimal latency. SolBank's on-chain clearinghouse serves as the central hub, amalgamating perpetual and spot markets, collateral, and risk assessments into a unified system.

The fusion of an AMM and orderbook lays the groundwork for a cohesive trading stack, with vertically integrated DeFi primitives forming the core on-chain products. Each element of SolBank's trading stack contributes to a robust on-chain trading platform, mitigating the limitations associated with siloed DEX models prevalent in existing DeFi protocols, while synergizing their strengths within a unified exchange environment.

This hybrid orderbook-AMM DEX optimizes performance, liquidity flexibility, and product diversity, epitomizing the advantages of SolBank's innovative approach. To provide a comprehensive understanding of the SolBank DEX's design principles and ensuing benefits, the hybrid orderbook-AMM model can be delineated into three primary pillars:

1. A fully on-chain trading venue (constant product AMM) at the protocol level.

2. A fully on-chain risk engine at the protocol level.

3. An off-chain sequencer for order matching.