Robin.markets architecture

Robin.markets is a cross-chain decision market built on Chromia, a modular layer 1 blockchain based on a relational database. In this chapter we aim to open up the building blocks of Robin.markets a bit more, and explain how it is built.

Limit order book

Our trading engine is built on Chromia, utilizing its Postchain framework, which provides a relational blockchain model optimized for handling complex, high-throughput applications like order books along with matching engines completely on-chain.

• Order Matching Engine

  • We use a decentralized order-matching mechanism and on-chain settlement for security.

  • Orders are stored and executed on-chain within a deterministic order book engine and all trades are settled transparently on Chromia.

  • Traders can place limit orders, specifying price levels at which they want to buy/sell, similar to centralized exchanges.

  • Funds are exchanged via Chromia's official FT4 token standard and are locked in the markets before settlement using FT4 lock accounts.

• Settlement Layer

  • Once an order is matched, trade settlement is executed on Chromia’s smart contracts.

  • Settlement finality is ensured through Postchain, which allows for quick execution without network congestion issues seen on traditional EVM chains.

• Liquidity Considerations

  • Market makers can inject liquidity through automated strategies or manual order placement.

  • Post-beta updates may include a market making vault deployed to run strategies across decision markets allowing our community to benefit from alpha.

  • Post-beta updates will also allow for a managed API access for trading and receiving market data.

Cross-Chain Asset Transfers via Chromia's EVM Token Bridge

To support traders from other EVM-based networks, we have integrated Chromia’s EVM token bridge, enabling seamless deposits and withdrawals.

• Deposits

  • Users deposit assets (e.g., USDC, ETH, governance tokens) from any EVM-compatible chain.

  • The bridge locks assets on the source chain and mints wrapped versions on Chromia.

  • These wrapped tokens are used for trading.

• Withdrawals

  • Users can burn their wrapped tokens on Chromia, triggering the unlocking of native assets on the corresponding EVM chain.

  • Withdrawals follow a secure validation mechanism via Chromia's bridge contracts.

• Security Model

  • The bridge relies on multi-signature validators and decentralized relayers to prevent fraudulent transactions.

  • Withdrawals require finality confirmation on both networks to ensure assets are safely transferred.

On-Chain Governance & Market Resolution

Since decision markets facilitate trading on governance proposals, we ensure that market outcomes are resolved fairly and transparently:

• VWAP to combat price manipulation

  • We use VWAP for the pass and fail market prices to combat traders pushing price in their direction without significant order size.

    • We believe that VWAP gives the most accurate representation of a true value while it incentivises traders to make use of any potential market efficiencies driven by manipulation attempts.

• Oracles & Data Sources

  • Market resolutions are determined by on-chain governance oracles that verify the outcome of DAO proposals.

  • In some cases, manual arbitration or dispute mechanisms may be used for contested outcomes.

• Smart Contract-Based Settlement

  • Winning traders receive payouts directly on Chromia, while losing positions are burned.

  • Settlement logic follows predefined governance rules, ensuring manipulation resistance.