TL;DR:
> Type of takers responsible for price discovery: HFT/algorithmic and latency-sensitive traders.
> Type of venues dominating price discovery: CEXes and DEXes with low-latency FCFS microstructure.
Cancel priority, RFQ, and FBA microstructures deter the very category of trades responsible for the bulk of price discovery.
"MEV — that ability for people to reorder transactions to extract value, something that happens on top of Ethereum and Solana — that's just not suitable for financial markets."
@drwconvexity@DRWTrading
Continuum is now live on testnet.
You can check out the explorer here: https://t.co/RiEVfjtJu0
And learn more from the whitepaper: https://t.co/0JZ6CowUaA
(This is the last post in the thread)
First, the sequencer must have an internal source of time - we use a recursive Weselowski VDF as proof of elapsed time, at microsecond resolution.
Second, when assigning these timestamps, the sequencer must be blind to the contents of the order.
We achieve this by utilising fine-grained time-lock encryption, which allows the order to be hidden during ordering and decryptable rapidly thereafter, enabling blind ordering and fast execution simultaneously.
Continuum aims to answer the question: Who came first?
Surprisingly enough, there is no cryptographic primitive/trustless way to answer this at fine-grained time resolution as of today. The closest thing we have is committee-based fair-ordering protocols that operate at coarse resolutions of a few seconds.
Continuum is a trustless, verifiable sequencing protocol. It allows users to trust that all incoming orders were treated the same, and indexed fairly upon arrival. While the full protocol is described in our whitepaper, we can highlight two key aspects required to make this possible.