QuantumLayer - Extensible Trading Layer (on Hedera Hashgraph)

Project Overview‍

This project aims to build a decentralized on-chain central limit order book on Hedera, leveraging its high-throughput, low fees, and fair transaction ordering to create a robust order book exchange. The development will involve multiple stages, including integration of existing technologies, a beta testnet for user feedback, and a public mainnet launch. Success will be measured by key metrics such as Total Value Locked (TVL), trading volume, and user acquisition. The project will be supported by an experienced in-house team of engineers to ensure secure and efficient implementation.

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Abstract

StellaSwap, the largest decentralized exchange (DEX) on Polkadot, aims to pioneer the development of a decentralized on-chain central limit order book on Hedera’s high-performance blockchain. With Hedera’s strengths in high throughput, low predictable fees, and fair transaction ordering, the project seeks to enhance the viability of decentralized trading. The combination of near-instant finality and low-fee trading is expected to fuel ecosystem growth, positioning Hedera as a leader in decentralized finance (DeFi) and strengthening the blockchain’s infrastructure for future innovation.

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Background

StellaSwap, a hybrid DEX on Moonbeam, combines standard, stable, and concentrated liquidity AMMs to offer optimal price discovery for assets. As the largest DEX and DeFi gateway on Polkadot, users can engage in trading, liquidity provisioning, bridging, and cross-chain swaps. StellaSwap boasts over $1B in trading volume and has introduced innovative features like Initial Liquidity Offerings (ILO) and Pulsar, the first concentrated liquidity AMM. Supported by Moonbeam’s Level 3 grants, StellaSwap continues to drive ecosystem growth through partnerships with key DeFi protocols and projects.

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Objectives

The development and deployment of a decentralized on-chain central limit order book on Hedera, with a focus on engineering, audits, and operational expenses. The project seeks to create a high-throughput DEX that mirrors centralized exchange experiences while maintaining non-custodial control, driving DeFi growth on Hedera. Key success metrics include increasing Total Value Locked (TVL), trading volume, reducing slippage, and acquiring new users. Development will be managed by an in-house team, integrating advanced order book technologies into a single platform.

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Expected Outcomes and Impact

The project will drive mainstream DeFi adoption by simplifying decentralized exchanges through a user-friendly, high-throughput, decentralized order book on Hedera. By addressing user complexity and providing a trading experience akin to centralized exchanges, the project reduces barriers for institutional participation and fosters a wider DeFi ecosystem. Additionally, the development of open-source standards will facilitate innovation within the space. The project aims to establish a robust, decentralized infrastructure for trading, while enabling other protocols to leverage its liquidity and matching services for broader ecosystem growth.

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Ecosystem Development

This project aims to build a decentralized on-chain central limit order book on Hedera, leveraging its high throughput, low fees, and fair transaction ordering to drive ecosystem growth. With a focus on integrating advanced order book technologies and delivering a user experience akin to centralized exchanges, the project will foster mainstream DeFi adoption. Success will be measured by increased Total Value Locked (TVL), trading volume, reduced slippage, and user acquisition, with all development managed by an experienced in-house team focused on scaling Hedera's DeFi ecosystem.

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Methodology & Implementation

The project will proceed through three stages. First, the development phase will focus on integrating existing order book DEX technologies with StellaSwap’s unique tech stack, ensuring security and meeting project requirements. Next, the testnet deployment will allow selected users to provide feedback, fine-tune the platform, and increase community engagement. Finally, after all optimizations, the mainnet deployment will launch publicly, supported by a robust go-to-market strategy. Prior to the launch, smart contract audits by two reputable firms will ensure the system’s security and integrity.

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Conclusion

QuantumLayer will deliver a decentralized on-chain central limit order book on Hedera, leveraging its high throughput and low fees to drive DeFi adoption. By integrating advanced order book technologies, the project aims to provide a user experience comparable to centralized exchanges, ensuring security and scalability. With a focus on increasing Total Value Locked (TVL), trading volume, and user acquisition, the project will foster ecosystem growth on Hedera. A dedicated in-house team will oversee the development, ensuring smooth deployment and long-term success.