Page cover

💡Carbon Solution & Architecture Overview

Carbon is designed for easy, fast, and efficient trading. Here’s how it works:


Bridging Liquidity On-Chain

Carbon combines the performance of centralized infrastructure with the guarantees of on-chain settlement.

  • Exchange-grade Execution: Carbon routes orders to solvers that hedge across the deepest venues in crypto and TradFi, including Binance, Bybit, and global CFD brokers.

  • On-Chain Finality: All trades settle on-chain with locked collateral and transparent outcomes. No off-chain IOUs or synthetic fills.

By abstracting execution and standardizing settlement through intents, Carbon delivers a hybrid model:

  • Speed, spreads, and liquidity from the largest markets in the world.

  • Full custody, transparency, and control through on-chain infrastructure.

You no longer have to choose between CEX liquidity and DEX transparency. Carbon gives you both.


Execution Without Compromise

  • Instant Fills: Intents are filled through a solver network that competes for best execution.

  • Real Liquidity: Access 500+ crypto pairs and (soon) 200+ TradFi contracts with real hedging behind every fill.

  • Unified Interface: Trade directly through the Carbon WebApp, designed for fast, secure, and multi-market access.


Accessible From Anywhere

  • WebApp First: The Carbon WebApp is your main trading interface, combining speed, clarity, and control.

  • Telegram Companion: For those who prefer it, Carbon also integrates with Telegram for simple trade mirroring, updates, and group features through the Carbon bot.

Whether you're managing high-leverage perps or exploring new TradFi contracts, Carbon gives you seamless access from any device.


Carbon’s Intent-Based Architecture and Order Flow

The traditional trading process involves traders requesting a quote (RFQ) from market makers. When a trader wants to long or short a derivative contract at a specific price and size, market makers provide customized quotes. The trader reviews the options and picks the best one. This process can be slow, but it allows for tailored price discovery.

Carbon simplifies this process by continuously streaming the best available quotes. Instead of waiting for a quote, traders are immediately presented with the most competitive price and conditions in real time. This speeds up the entire process, eliminating the delays and complexities of traditional RFQ systems.

With this innovative approach, Carbon introduces a new type of exchange: an Automatic Market for Quotations (AMFQ) exchange.

How It Works:

  1. A trader logs into Carbon and inputs their trade intent (e.g., "long 1 BTC at 10x leverage").

  2. The Carbon system automatically fetches quotes from market makers, showing key details such as price, slippage, fees, and funding rates.

  3. The trader instantly sees the best available quote and can decide to execute the trade right away. This eliminates the need to manually request and compare quotes like in traditional RFQ systems.

Note: Steps 1 - 3 happen off-chain through the Carbon exchange.

At this point, no capital has been committed by the market maker yet. The quote is simply a real-time offer displayed automatically.

Trade Execution Process:

  1. Once satisfied with the quote, the trader sends a “Request to Trade” to the market maker, locking in their collateral.

  2. The market maker reviews and accepts the request, matching the trader’s collateral with their own.

  3. This creates a “bilateral agreement” between the trader and market maker, where one party is obligated to pay the other based on price movement. The contract is isolated and symmetrical, remaining in effect until the position is closed or liquidated.

Note: Steps 4-6 are handled on-chain, ensuring that all agreements and collateral are securely recorded.

Hedging and Risk Management:

  1. The market maker (solver) can then hedge their position, such as a long BTC, on various platforms (CEXs, DEXs, OTC desks, etc.), or with other strategies like non-linear options or spot holdings. This process takes place off-chain, and the market maker is responsible for managing their hedging strategy.

Since the collateral is locked into the Bilateral Agreement and isolated from external factors, traders don’t need to trust the market maker’s solvency, making the process safer and more secure.

Last updated