Sidepit is an innovative platform for trading assets based on Bitcoin. The innovative idea is to eliminate front-running by high-frequency traders and miners. This is achieved by conducting trades once per second in the form of an auction of orders received during the previous second.
Sidepit has not yet been launched (it is planned to launch it simultaneously with the halving), and for evaluation, only documentation is available, based on which I have formed such an understanding of the platform's mechanism. (If I have misunderstood anything, please correct me.)
In Sidepit, a distributed "mempool" of orders will be created, where each network node can add its orders, and every second there will be an "auction" of incoming orders.
For example, during one second:
- Alice placed an order to sell 100 units of the asset at a price of 1495 satoshis per unit;
- Bob placed an order to sell 100 units of the asset at 1462 satoshis per unit;
- Carol placed an order to buy 50 units at 1495 satoshis;
- Dave placed an order to buy 100 units at 1472 satoshis.
(I chose prices that roughly correspond to the current dollar rate expressed in satoshis because, as far as I understand, the first asset available for trading should be a perpetual USD/SAT swap contract.)
At the end of the second, orders are first matched for those who offered the best price:
- Carol buys 50 units from Bob (unfortunately, I did not understand the exact price of such a deal).
Then it's the turn for orders with a worse price:
- Dave buys 50 units from Bob (the pricing formula is also unclear).
Alice's order and half of Dave's order remain unfulfilled. They return to the mempool and go to the next auction.
There is very little time left before the platform is launched, and then we will be able to verify at what prices transactions will actually be made at auctions.
In the meantime, you can:
- apply for access on the website
https://sidepit.com,
- learn more about the exchange concept on the page
https://docs.sidepit.com,
- check what the exchange interface will look like on the page
https://frontend.test.sidepit.com/trade. You can find the login and password for access
here.
I've looked at it, and everything seemed simple and understandable to me except for the price of each particular trade. Here's a screenshot:
