Open, transparent RfQ Market making infrastructure

The objective of 0xWhale is to create an infrastructure which is open, non custodial, transparent, accessible to anyone and which provides optimal market making performances.

In order to deliver this, 0xWhale relies on 3 core modules, as described in the graphics below

Inventory: 0xWhale’s on-chain inventory management is taken care of by the 0xWhaleVault. LPs can join, exit, or swap assets through this interface. The system is gas-optimized, and it's built upon the Balancer v2 Vault, inheriting its benefits and security guarantees. Additionally, idle funds can be allocated to various yield-generating protocols such as Aave, Compound, Spark, Fraxlend, or Morpho, offering additional returns.

Quotation: The quotation process, managed by 0xWhale Labs, takes place off-chain. This allows the deployment of state-of-the-art market-making strategies, ensuring adaptivity by considering variables such as market price, volatility, and trading appetite. For more information, please refer to the section optimal market making.

Settlement: Prior to executing a trade, 0xWhale employs on-chain safeguards to revise or reject outdated or underpriced quotes. These include a Max Drawdown Circuit Breaker, Last Look, and Max Imbalance. These safeguards are designed to protect LPs' funds, especially during extreme market conditions such as flash crashes or stablecoin de-peggings.