Composability Labs Unveils Spark: A High-Speed Onchain CLOB Leveraging Polygon (MATIC) Miden

Composability
Labs
is
making
strides
in
the
decentralized
finance
(DeFi)
sector
with
the
development
of
Spark,
a
high-speed
onchain
central
limit
order
book
(CLOB)
designed
to
leverage
Polygon
(MATIC)
Miden’s
state-minimization
features,
according
to

Polygon
Technology.

Addressing
State
Bloat
in
Blockchain

State
bloat
is
a
persistent
issue
in
blockchain
technology,
where
increased
usage
leads
to
an
accumulation
of
data,
slowing
down
the
system
and
increasing
transaction
costs.
Polygon
Miden
tackles
this
problem
by
incorporating
state
minimization,
allowing
block
production
and
verification
without
storing
the
entire
state
of
the
zkVM
rollup.
Instead,
zero-knowledge
proofs
(ZKPs)
enable
users
to
store
their
own
data,
with
the
rollup
only
tracking
verifiable
commitments
to
that
data.

Introducing
Spark

Spark
is
a
decentralized
order
book
that
will
operate
on
Polygon
Miden,
utilizing
a
state-minimized
design.
This
approach
aims
to
optimize
the
implementation
of
order
books
in
the
cryptocurrency
space,
enhancing
the
efficiency
and
transparency
of
DeFi
transactions.
The
unique
architecture
of
Polygon
Miden
supports
this
by
ensuring
all
execution
occurs
onchain,
avoiding
the
typical
trade-offs
associated
with
off-chain
solutions.

Advantages
of
Spark

Spark
brings
several
key
benefits
to
DeFi
users:

1. 
   Onchain
   Execution:
   Ensures
   greater
   transparency
   and
   security
   compared
   to
   off-chain
   solutions.
2. 
   Advanced
   Order
   Types
   and
   Market
   Depth:
   Supports
   complex
   order
   types
   and
   provides
   a
   clear
   view
   of
   market
   depth
   and
   liquidity,
   essential
   for
   professional
   traders.
3. 
   Transparency:
   Offers
   easy
   access
   to
   transaction
   data,
   enhancing
   trust
   and
   verifiability.
4. 
   Reduced
   Trade-offs:
   Mitigates
   the
   transparency
   and
   security
   risks
   associated
   with
   off-chain
   order
   books.
5. 
   Support
   for
   Trading
   Strategies:
   Incorporates
   standard
   practices
   for
   efficient
   and
   effective
   trading
   operations.

Design
Approach
for
Perpetuals
and
Spot
Markets

Composability
Labs
is
committed
to
advancing
onchain
DeFi
execution
with
high-performance,
order-book-based
protocols.
Polygon
Miden’s
account
abstraction
and
note
architecture
improve
user
experience
by
ensuring
efficiency
and
sovereignty.
The
state-minimized
design
enables
a
locally-executed,
onchain
CLOB,
which
is
crucial
for
the
development
of
spot
and
perpetual
markets.

Additional
features,
such
as
an
onchain
price
oracle,
are
planned
to
enhance
the
functionality
of
perpetual
markets.
This
could
enable
multiple
notes
to
be
consumed
in
one
transaction,
allowing
for
concurrent
transactions
and
further
improving
efficiency.

Understanding
Polygon
Miden

Polygon
Miden
combines
elements
from
Bitcoin
and
Ethereum,
using
customizable
UTXOs
(unspent
transaction
outputs)
and
client-side
proving
of
transactions
enabled
by
ZKPs.
This
design
allows
for
parallel
processing
of
transactions,
significantly
improving
performance
and
scalability.

Polygon
Miden’s
innovative
approach
to
blockchain
design
and
its
state-minimized
environment
make
it
a
promising
platform
for
the
future
of
DeFi,
particularly
for
order
book-based
protocols
like
Spark.
As
Composability
Labs
continues
to
develop
Spark,
the
Ethereum
DeFi
landscape
is
set
to
benefit
from
enhanced
trading
infrastructure
and
improved
user
experience.

Image
source:
Shutterstock