A relayer node interacts with the twilight base layer to open and settle trade orders. There are 4 building blocks of this relayer:

  1. zk-Matchbook: A trustless prover design for a limit order book relayer.

  2. Continuous price feed: 1-sec aggregated snapshot of index prices on set list of exchanges.

  3. Twilight Pool: A private liquidity pool design with a single token exposure.

  4. Funding Rate Oracle: An external oracle that calculates funding rate every hour.

Twilight Pool is NOT a CFMM design and doesn't use a curve for price discovery. It's rather a simple single token liquidity pool, provided with an aggregated index price to settle trades on the other side of the book. The idea of providing a price to a pool was first experimented by FutureSwap in their Alpha Launch, followed by SIP-80 on Synthetix.

Providing Liquidity

Twilight pool is defined by locked LendTx on the base layer. Anyone can provide liquidity to a twilight pool by depositing their wBTC from Ethereum to Twilight's base layer and then locking their account as a LendTx via the exchange relayer. The amount locked in the twilight pool and the individual APY remains confidential. To understand returns on your deposits, please refer to LP Returns.

pageLP Returns

Trading Futures

Twilight lets you trade with 50x leverage on your positions, where the funding rate is charged every hour. You can trade with either limit/market order or place a dark order to keep your position size confidential. The exchange lets you open positions in wBTC, where position size is calculated in USD but settled in wBTC.

Please refer to Perpetual Futures Guide for specifications.

pagePerpetual Futures Guide

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