Architecture
NeroX routes trading requests through a distributed access layer to a cluster of specialized services that handle wallet security, market execution, and settlement on-chain. Trade queries are processed by elastic, stateless workers that interact directly with decentralized liquidity pools and token platforms, ensuring high throughput and transparent execution.
Data Acquisition Layer
Trading data flows through a multi-layered request system designed for low latency and integrity:
Regional Gateways: User requests (REST, WebSocket, gRPC) are received by regional gateways positioned for jurisdictional compliance. These gateways handle authentication, anti-abuse checks, protocol translation, and request validation. They support multiple wallet connection methods (MPC-based, hardware, browser extensions) and buffer requests during downstream congestion.
High-availability routing: An intelligent routing layer distributes orders to healthy matching engines using real-time node health monitoring. Failover ensures that if a primary engine is unavailable, requests are rerouted automatically or queued in a backlog for execution when services recover.
Streaming Pipeline: Order data and price feeds are processed in real time, validated, and normalized. Risk checks, position limits, and compliance rules are applied at this stage.
Transaction Logging: All order requests and signatures are durably recorded in a distributed database-like log before execution. This guarantees auditability, zero data loss, and ensures trade replayability if failures occur.
Storage architecture
NeroX maintains a hybrid on-chain/off-chain storage system for performance and transparency:
On-chain storage: Trades, settlements, and critical user balances are anchored to smart contracts for verifiability.
Off-chain storage: Market depth, historical trades, and analytics data are stored in a high-performance columnar database optimized for financial time-series.
Compression pipeline:
Transaction execution: Sending on-chain transactions in near real time (3-5x reduction).
Block compression: Transaction/Block compressed in data warehouse for queries (10x reduction).
Archival tiers: Older data automatically migrated to cheaper storage tiers with lifecycle management.
Execution architecture
NeroX executes trades with an elastic, microservices-based execution layer:
Order Compilation: User trades are parsed, validated, and transformed into execution plans. The system applies gas optimization, slippage controls, and best-execution routing across DEXs, or internal liquidity pools.
Serverless Matching Workers: Trades are executed by ephemeral workers that spin up on demand. Workers interact directly with blockchain nodes, signing transactions via MPC without exposing private keys.
Parallel Execution: Orders are distributed across multiple matching engines for high throughput. Each engine processes its subset of pools independently, enabling scale-out performance.
Result aggregation: Execution results (fills, reverts, confirmations) are streamed back to clients via WebSocket and persisted in off-chain databases.
Intelligent Caching: Market data snapshots and aggregated data views are cached in object storage and memory grids, reducing latency for repeated queries.
Security & Key Management
A Multi-Party Computation (MPC) system secures private keys:
Keys are split into shares and distributed across independent servers/devices.
No single party holds the full key, preventing theft.
Threshold signing allows collaborative execution without reconstructing the key.
Policies align with organizational governance and compliance.
This ensures resilient custody while enabling a seamless user experience.
Governance & Risk Layer
Risk Engine: Performs real-time execution, leverage, and balance checks before trades execute.
Compliance Engine: Enforces data security policies, regional restrictions, and reporting.
Orchestration Layer: Coordinates distributed workers, monitors system health, and triggers automatic failover.
Architecture Benefits
Security first: MPC key management removes single points of failure while ensuring user-friendly custody.
Cost efficiency: Hybrid storage, elastic compute, and caching reduce infrastructure and gas costs.
Operational simplicity: Automatic failover, distributed routing, and background maintenance minimize manual operations.
Elastic scale: Ingestion, execution, and storage scale independently to handle spikes in trading volume.
Transparency & trust: On-chain settlement, audit logs, and compliance checks ensure verifiable and fair execution.
Performance: Low-latency routing, parallel execution, and caching enable sub-second trade confirmations.
NeroX’s architecture allows tens of thousands of executions per second while ensuring secure custody, transparent execution, and business-grade compliance for Web3 trading.
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