Spicenet Execution Network

The Spicenet Execution Network is a collection of highly specialized orchestrators, executors and rebalancers whose main responsibility is to unify liquidity across underlying blockchain environments into a composable liquidity structure, allowing developers on Spicenet to compose and utilize liquidity across the cryptoeconomy. Let's understand why the Spicenet Execution Network is important, how is it different from similar solutions, and how it operates.

Importance of a Specialized Off-Chain Order Execution Network

One of the main properties of the Spicenet Execution Network is it's ability to unify liquidity across underlying blockchain protocols into a composable liquidity structure that orders can be executed/fulfilled against. What does this mean? Fundamentally, orders are not bound by the local minima of siloed blockchain environments, and hence can tap into liquidity for any asset protocol on any chain. This means that developers are no longer constrained by the blockchain environment they are developing in, and develop truly global applications offering deep liquidity and optimal fills for users.

This is only uniquely possible on the Spicenet Execution network because it modularizes various aspects of quality order execution, such as orchestration, execution/fulfillment, and post-order rebalancing for LPs. By constructing orders as intents specifying a desired outcome, these can be routed efficiently across underlying blockchains, returning the user with the specified outcome. An underrated property of the Spicenet Execution Network is that it also unifies various asset protocols on these underlying blockchains, enhancing composability and interoperability between heterogenous assets like RWAs, Ordinals, BRC-20s, and more.

How is it different?

Liquidity without functionality is meaningless. And the Spicenet Execution Network, in cohesion with the Spicenet Trading Stack offers rich functionality to developers in building full-stack applications on top of Global liquidity routes. These include:

Spot swaps with integrated margin
Cross-margined money markets
Futures on multiple time series'
Tokenized yield vaults,
and more.

Developers can mix-and-match these primitives in various forms to create unique, differentiated and niche applications that compose on and utility liquidity across the cryptoeconomy. Let's also explore some really promising and sample use-cases that developers can build using global liquidity routes:

Tokenization of complex cross-chain interactions, allowing users to easily execute complex DeFi strategies across multiple blockchains, potentially leading to amplification of yield.
Enhancing composability between heterogenous asset protocols. For example, explore synergies between RWAs and Bitcoin-native assets, two asset protocols that were highly distinct before, but united by the Spicenet Execution Network.
The home for modular tokens, featuring the Celestia ecosystem of Movement, Initia, Eclipse, and more.

How it Operates

The Spicenet Execution Network is a collection of highly specialized actors:

Orchestrators(currently only the network)
Executors(fka Solvers)
Rebalancers

Solver marketplaces have largely been monolithic where everything from route discovery, execution, settlement, and rebalancing has to be managed by the solver, often limiting participation. The Spicenet Execution modularizes the solving process into a set of specialized actors optimized for a specific job.

Orchestrators: Orchestrators continually consume new orders to create a liquidity route "map", an execution trace which determines how an order should be executed against the liquidity of underlying blockchains. Orders are broken up into "order fragments" where each fragment is coupled to a "liquidity path", a collection of atomic liquidity routes. All liquidity paths eventually lead to the output token amount. Orchestration ensures that the end user gets more, while executors actually executing order fragments can pay the least fees while trading on onchain venues.
- Currently, only the Spicenet blockchain is a whitelisted orchestrator, and employs a proprietary orchestration algorithm utilizing Allora Network's collective AI inference services.
Executors: Executors actually execute order fragments along whole liquidity paths, consisting of atomic liquidity routes, or may work collectively with other executors where each executor just executes a part of the order fragment against a liquidity route(or a set of liquidity routes) specified in a liquidity path. This logic is not necessarily deterministic and is determined during orchestration.
Rebalancers: Rebalancers are third-party actors that work with executors to rebalance their inventory to a desired proportion.
- Due to it's modular architecture, the Spicenet Execution Network currently integrates the Everclear protocol — the first Clearing layer, as an enshrined Rebalancing services.

Use-cases of the Spicenet Execution Network

Flash Liquidity: With a built-in mechanism to create and share commitments backed by stake, executors can tap into off-chain inventory of other executors to fulfil order fragments, with flexible repayments.
Chain Swaps: The native bridging protocol of Spicenet allowing users to deposit directly to Spicenet applications in <5s backed by strong economic security, such that users never experience they are bridging their funds to a separate chain. Depositing is the new bridging.

Protocols and Networks Adopting the Spicenet Execution Network

Plume Network: the first RWAfi L1, driving unique use-cases for RWAs. With a strategic integration of the Spicenet Execution Network, developers can seamlessly integrate RWAfi capabilities into their applications, and composability between RWA and DeFi can be enhanced.
Nubit: Developers of the Goldinals protocol, unifying fragmented Bitcoin-native assets into a single standard. With Goldinals, developers can build for BTCfi, and tap into Bitcoin's blockspace and network effects.
Fiamma: A BitVM contributor and creator of mamaBTC. By integrating the Spicenet Execution Network with mamaBTC, users can swap and trade a whole range of assets, including LSTs, LRTs, Stablecoins, Majors and Alts to mamaBTC, enhancing composability with the broader DeFi ecosystem.

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Last updated 5 months ago

Importance of a Specialized Off-Chain Order Execution Network

How is it different?

Spot swaps with integrated margin

Cross-margined money markets

Futures on multiple time series'

Tokenized yield vaults,

and more.

Tokenization of complex cross-chain interactions, allowing users to easily execute complex DeFi strategies across multiple blockchains, potentially leading to amplification of yield.

Enhancing composability between heterogenous asset protocols. For example, explore synergies between RWAs and Bitcoin-native assets, two asset protocols that were highly distinct before, but united by the Spicenet Execution Network.

The home for modular tokens, featuring the Celestia ecosystem of Movement, Initia, Eclipse, and more.

How it Operates

The Spicenet Execution Network is a collection of highly specialized actors:

Orchestrators(currently only the network)

Executors(fka Solvers)

Rebalancers

Orchestrators: Orchestrators continually consume new orders to create a liquidity route "map", an execution trace which determines how an order should be executed against the liquidity of underlying blockchains. Orders are broken up into "order fragments" where each fragment is coupled to a "liquidity path", a collection of atomic liquidity routes. All liquidity paths eventually lead to the output token amount. Orchestration ensures that the end user gets more, while executors actually executing order fragments can pay the least fees while trading on onchain venues.

Currently, only the Spicenet blockchain is a whitelisted orchestrator, and employs a proprietary orchestration algorithm utilizing Allora Network's collective AI inference services.

Executors: Executors actually execute order fragments along whole liquidity paths, consisting of atomic liquidity routes, or may work collectively with other executors where each executor just executes a part of the order fragment against a liquidity route(or a set of liquidity routes) specified in a liquidity path. This logic is not necessarily deterministic and is determined during orchestration.

Rebalancers: Rebalancers are third-party actors that work with executors to rebalance their inventory to a desired proportion.

Due to it's modular architecture, the Spicenet Execution Network currently integrates the Everclear protocol — the first Clearing layer, as an enshrined Rebalancing services.

Use-cases of the Spicenet Execution Network

Flash Liquidity: With a built-in mechanism to create and share commitments backed by stake, executors can tap into off-chain inventory of other executors to fulfil order fragments, with flexible repayments.

Chain Swaps: The native bridging protocol of Spicenet allowing users to deposit directly to Spicenet applications in <5s backed by strong economic security, such that users never experience they are bridging their funds to a separate chain. Depositing is the new bridging.

Protocols and Networks Adopting the Spicenet Execution Network

Plume Network: the first RWAfi L1, driving unique use-cases for RWAs. With a strategic integration of the Spicenet Execution Network, developers can seamlessly integrate RWAfi capabilities into their applications, and composability between RWA and DeFi can be enhanced.

Nubit: Developers of the Goldinals protocol, unifying fragmented Bitcoin-native assets into a single standard. With Goldinals, developers can build for BTCfi, and tap into Bitcoin's blockspace and network effects.

Fiamma: A BitVM contributor and creator of mamaBTC. By integrating the Spicenet Execution Network with mamaBTC, users can swap and trade a whole range of assets, including LSTs, LRTs, Stablecoins, Majors and Alts to mamaBTC, enhancing composability with the broader DeFi ecosystem.