This guide provides a technical overview of how to trade on Paradex, focusing on its unique infrastructure as a dedicated Paradex Starknet Appchain for derivatives trading.
Step 1: Understanding the Appchain Model
Paradex is not a dApp on a congested, general-purpose L2. It is its own sovereign chain, an application-specific rollup (Appchain) built using the Starknet stack. This gives it full control over its block space and transaction sequencing, which is crucial for achieving Paradex CEX performance.
Step 2: The Hybrid Orderbook System
Paradex uses a hybrid model for maximum efficiency:
Paradex off-chain orderbook: Orders, modifications, and cancellations happen in a high-speed, off-chain matching engine. This allows for a real-time trading experience without gas costs for every interaction.
On-Chain Settlement: Matched trades are batched, proven, and settled on-chain. This leverages the security of Starknet's ZK-rollup technology and ensures Paradex self-custody is never compromised.
Step 3: The Trading Flow
Connect your wallet to the Paradex Official platform.
Place limit or market orders on the Paradex perpetuals exchange. These actions are instantly reflected in the off-chain orderbook.
Once your order is matched, the trade is immutably recorded on the Appchain.
This entire process is designed to feel like a CEX while upholding the core tenets of DeFi. Your activity is rewarded via the Paradex Points Program. For a full architectural diagram, see the Full Official Documentation.
Top comments (0)