Architectural Overview

Tackling the Liquidity Conundrum

In the decentralized trading ecosystem, liquidity often poses a classic catch-22: traders flock to highly liquid markets, and liquidity providers are drawn to markets already bustling with traders. Historically, this dynamic has favored centralized exchanges, leaving DeFi platforms grappling with the question of how to attract both liquidity and traders simultaneously.

Liquidity is further complicated by fragmentation; capital locked within one DEX remains inaccessible to others, creating significant inefficiencies across the market.

Vibe’s Intent-Based Architecture

Transforming the Traditional RFQ Process

In conventional Request for Quote (RFQ) systems, traders often waste time searching for quotes. Vibe overcomes this pain point by streaming real-time quotes, ensuring traders can immediately see the best available offers.

Introducing: Vibe Trading’s Automatic Market for Quotations (AMFQ) Exchange

This innovative model brings unparalleled efficiency to on-chain trading, simplifying the user experience and boosting overall market liquidity

How It Works

Trade Intention Traders define their goal (e.g., “Long 1 BTC with 10x leverage”) through Vibe.
Solver’s Offer Solvers - acting as market makers - present real-time offers, detailing price, slippage, fees, and more. This process is fully automated, requiring no upfront capital commitment from solvers.
Choosing to Execute Traders receive the best possible quote on the spot and can opt to execute immediately, bypassing the time-consuming bid evaluation often associated with traditional RFQ.

On-Chain Execution

Request to Trade When a trader accepts an offer, they send a “Request to Trade” to the solver, locking in their collateral.
Solver Acceptance The solver reviews the request and, if everything checks out, deposits their collateral. This step establishes a bilateral agreement between both parties.
Perpetual Bilateral Agreement The position remains active until the trader closes it or until one of the parties is subject to liquidation - ensuring a balanced, isolated contract throughout the trade’s lifecycle.

Hedging and Position Management

Off-Chain Hedging Solvers manage their exposure independently, hedging through various external sources - such as centralized or decentralized exchanges, or options markets. Since these actions occur off-chain, solvers have full control over their strategies without any on-chain constraints.

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Last updated 7 days ago

Tackling the Liquidity Conundrum

Liquidity is further complicated by fragmentation; capital locked within one DEX remains inaccessible to others, creating significant inefficiencies across the market.

How It Works

Trade Intention Traders define their goal (e.g., “Long 1 BTC with 10x leverage”) through Vibe.

Solver’s Offer Solvers - acting as market makers - present real-time offers, detailing price, slippage, fees, and more. This process is fully automated, requiring no upfront capital commitment from solvers.

Choosing to Execute Traders receive the best possible quote on the spot and can opt to execute immediately, bypassing the time-consuming bid evaluation often associated with traditional RFQ.

On-Chain Execution

Request to Trade When a trader accepts an offer, they send a “Request to Trade” to the solver, locking in their collateral.

Solver Acceptance The solver reviews the request and, if everything checks out, deposits their collateral. This step establishes a bilateral agreement between both parties.

Perpetual Bilateral Agreement The position remains active until the trader closes it or until one of the parties is subject to liquidation - ensuring a balanced, isolated contract throughout the trade’s lifecycle.