Solana Orderbook with MagicBlock Ephemeral Rollups

A high-performance, gas-efficient orderbook implementation on Solana using MagicBlock's Ephemeral Rollups for optimal order matching and settlement.

Overview

This project implements a fully-featured Central Limit Order Book (CLOB) on Solana with the following key features:

• Efficient Order Matching: Price-time priority matching using optimized data structures
• MagicBlock Integration: Leverages Ephemeral Rollups for high-frequency trading capabilities
• SPL Token Support: Full integration with SPL tokens for any trading pair
• Gas Optimization: Minimal compute unit usage through efficient algorithms
• Real-time Settlement: Instant order execution and settlement on Ephemeral Rollups

Architecture

Core Components

1. Orderbook Program (programs/orderbook/)

   • Main Anchor program handling order lifecycle
   • State management for market data
   • Order matching engine implementation

2. MagicBlock Integration (programs/ephemeral/)

   • Ephemeral Rollup state management
   • High-frequency order processing
   • Batch settlement to mainnet

3. Client SDK (sdk/)

   • TypeScript SDK for orderbook interaction
   • WebSocket real-time market data
   • Trading utilities and helpers

Data Structures

Market Account
├── Trading Pair Info (base/quote tokens)
├── Order Trees (Red-Black Trees for bids/asks)
├── Market Statistics
└── MagicBlock ER Configuration

Order Account
├── Order Details (price, quantity, side)
├── User Information
├── Timestamp & Sequence
└── Status & Fills

Technology Stack

• Solana: Layer 1 blockchain for final settlement
• Anchor Framework: Rust-based development framework
• MagicBlock ER: Ephemeral Rollups for high-frequency processing
• SPL Token: Standard token program integration
• TypeScript: Client SDK and tooling
• Redis: Optional caching layer for market data

Implementation Plan

Phase 1: Foundation (Week 1-2)

• Project setup and architecture design
• Anchor workspace initialization
• Core data structure design
• Basic orderbook program skeleton

Phase 2: Core Functionality (Week 3-4)

• Order placement and cancellation
• Price-time priority matching engine
• SPL token integration
• Basic testing framework

Phase 3: MagicBlock Integration (Week 5-6)

• Ephemeral Rollup setup
• High-frequency order processing
• Batch settlement mechanism
• Performance optimization

Phase 4: Advanced Features (Week 7-8)

• Client SDK development
• WebSocket market data feeds
• Advanced order types (IOC, FOK, etc.)
• Comprehensive testing

Phase 5: Production Ready (Week 9-10)

• Security audit and optimization
• Documentation and examples
• Deployment scripts
• Monitoring and analytics

Getting Started

Prerequisites

# Install Rust
curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh -s -- -y

# Install Solana CLI
sh -c "$(curl -sSfL https://release.anza.xyz/stable/install)"

# Install Anchor
npm install -g @coral-xyz/anchor-cli

# Install Node.js dependencies
npm install

Setup

1. Clone and Initialize

git clone <repository-url>
cd solana-orderbook-er
anchor build

2. Configure Environment

# Set Solana cluster
solana config set --url devnet

# Generate keypair (if needed)
solana-keygen new

# Configure Anchor
anchor keys list

3. Deploy Programs

# Build programs
anchor build

# Deploy to devnet
anchor deploy --provider.cluster devnet

Testing Strategy

Unit Tests

• Order placement and validation
• Matching engine algorithms
• SPL token operations
• State transitions

Integration Tests

• End-to-end order lifecycle
• MagicBlock ER integration
• Multi-user scenarios
• Error handling

Performance Tests

• Order throughput benchmarks
• Gas usage optimization
• Latency measurements
• Stress testing

Running Tests

# Run all tests
anchor test

# Run specific test suite
anchor test --skip-deploy tests/orderbook.ts

# Performance benchmarks
npm run benchmark

Usage Examples

Basic Order Placement

import { OrderbookClient } from './sdk';

const client = new OrderbookClient(connection, wallet);

// Place a buy order
const buyOrder = await client.placeLimitOrder({
  market: marketPubkey,
  side: 'buy',
  price: 100.5,
  quantity: 10,
  orderType: 'limit'
});

// Place a sell order
const sellOrder = await client.placeLimitOrder({
  market: marketPubkey,
  side: 'sell',
  price: 101.0,
  quantity: 5,
  orderType: 'limit'
});

Market Data Subscription

// Subscribe to real-time market data
client.subscribeToMarket(marketPubkey, {
  onOrderbookUpdate: (orderbook) => {
    console.log('New orderbook state:', orderbook);
  },
  onTrade: (trade) => {
    console.log('Trade executed:', trade);
  }
});

Configuration

Market Creation

const market = await client.createMarket({
  baseToken: baseMintPubkey,
  quoteToken: quoteMintPubkey,
  tickSize: 0.01,
  minOrderSize: 1,
  makerFee: 0.001,
  takerFee: 0.002
});

MagicBlock ER Setup

const erConfig = {
  validatorEndpoint: 'https://er-validator.magicblock.gg',
  batchSize: 100,
  settlementInterval: 1000, // ms
  maxPendingOrders: 10000
};

Security Considerations

• Order Validation: Comprehensive input validation and sanitization
• Access Control: Proper authority checks for all operations
• Reentrancy Protection: Guards against reentrancy attacks
• Integer Overflow: Safe math operations throughout
• Front-running Protection: MEV resistance through MagicBlock ER

Performance Metrics

Target Benchmarks

• Order Placement: < 50ms latency
• Order Matching: < 10ms execution time
• Throughput: > 1000 orders/second
• Gas Usage: < 10,000 CU per order

Contributing

1. Fork the repository
2. Create a feature branch
3. Implement changes with tests
4. Submit a pull request