Dexterity 5 Apr 22 Update

Release update

Following last months public release of the Dexterity whitepaper, here is an update of where contributing engineers are with development. As we have started doing for the other elements of ecosystem development, we will aim to provide regular updates as we approach our Dexterity's alpha release and beyond.

System overview

"It Takes A Village"
Building Dexterity has taken nothing short of a massive effort by a number of contributing engineers from some of the world's most sophisticated trading firms, financial institutions, Hxro's core team as well as key Solana engineers. The end result is a highly modular, composable key financial lego-block that will support trading a varied number of instruments not limited to perpetuals, futures, options and prediction markets. Here is a high level overview of the pieces involved.
(CHANGE THE VISUAL TO THE ONE FORM THE DEXGTERITY WHITE PAPER)
HXRO Dexterity deployment
In the diagram above, gray components are proprietary components built by Hxro or our partners. At first we will deploy a simple maker bot but will eventually build a sophisticated market maker (THEO) as described in an earlier announcement.

SDK

Hxro will provide a Rust, Python & Typescript SDK for the development of bots and UIs.

Main Programs

Dexterity builds on the asset agnostic orderbook, adding 4 more contracts working in tandem:
DEX - The DEX wraps the AAOB adding all the accounting logic needed for derivatives trading, such as funding, liquidations and margin checks.
Fees - Fees are designed to be configurable, the main HXRO fee program will provide constant maker/taker fees with volume incentives to be added in due course.
Instrument - Instrument contracts can be added to extend the capabilities of dexterity. Our initial version of the instrument contract will support perpetuals, futures and options but it will be entirely possible to add fixed income or prediction markets.
Risk - The proprietary HXRO risk engine is the secret sauce contributed by HXRO and it's partners to achieve capital efficiency while minimizing the risk of socialized losses to traders. A trader who has gone under the water is frozen from trading and participating traders can cancel their orders and liquidate their portfolio. We fully expect some participants to only participate as liquidators and not otherwise provide or take liquidity.

Cranks

Consume events - an extension of the well known Serum crank with the same name, this is a permissioned version cranking the AAOB queue and updating various accounting numbers in the DEX
Instruments crank - applies funding and expires instruments
A further risk "oracle" will ensure risk numbers as needed by the risk engine are kept up to date and finally a product "oracle" will ensure new instruments are created as previous ones expire.

Protocol Roadmap

We plan to kick off our testing in a closed devnet alpha, listing the following instruments:
  • a BTCUSD perp
  • 2 weekly futures
  • 2 monthly futures
  • 4 quarterly futures
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Outline
Release update
System overview
Protocol Roadmap