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Cross-Chain Derivatives Protocol with Shared Liquidity

Client Overview

  • 🔹Client: Confidential (Backed by top DeFi hedge funds and Web3 foundations)
  • 🔹Industry: Decentralized Finance / Derivatives Trading
  • 🔹Engagement Duration: 9 months.

Objectives

  • 🔹To build a cross-chain perpetuals trading platform that:
  • 🔹Enables margining and settlement across multiple L1 and L2 ecosystems
  • 🔹Offers real-time trading of perpetual futures with unified liquidity
  • 🔹Ensures secure interoperability using messaging bridges and zk-based proofs
  • 🔹Provides plug-and-play composability with other DeFi protocols

Solution Architecture

TechSteck Solutions developed a modular derivatives protocol leveraging:

  • 🔹Solidity smart contracts for core trading logic
  • 🔹LayerZero + Wormhole for secure cross-chain messaging and liquidity sync
  • 🔹zkSNARKs for off-chain position proofs validated on settlement layers

Key Components:

  • 🔹Multi-Chain Settlement Layer: Trades can be opened on one chain and closed on another, with margin adjustments reflected across all chains via LayerZero.
  • 🔹Unified Liquidity Engine: Designed shared pools with vaults on multiple chains, synced through Wormhole Guardian set and verified oracles.
  • 🔹ZK Position Verification: Generated zk proofs of trade history and margin state, enabling users to transfer positions across L2s without re-verification.
  • 🔹Composable Trading SDK: Created DeFi SDK for aggregators, vaults, and DEXes to integrate perpetual trading natively.

Technical Highlights

  • 🔹Oracle Feeds: Integrated Chainlink and Pyth Network for robust multi-chain price feeds.
  • 🔹Position Integrity: zk-circuits validated leverage and liquidation thresholds off-chain, with verification on mainnet settlement contracts.

Outcomes

  • 🔹24/7 Global Liquidity: TVL increased by 4.2x within two quarters post-launch across 6 supported chains.
  • 🔹Low-Latency Settlement: Users experienced <10s settlement finality across chains.
  • 🔹High Retention: 73% of users returned within the first month due to seamless multi-chain UX.

Lessons Learned

  • 🔹Bridge Risk Mitigation: Required fallback logic for LayerZero and Wormhole message failures.
  • 🔹ZK Complexity: Proof generation latency and verification costs required dedicated prover networks and light clients.
  • 🔹UX Matters: Unified liquidity UI and off-chain gas estimation dramatically improved user engagement.

Conclusion

    • TechSteck Solutions delivered a next-gen derivatives infrastructure that combined cross-chain liquidity, zk-based security, and DeFi composability — setting a new benchmark in decentralized perpetuals trading.

      Want to build secure and scalable cross-chain DeFi protocols? [Let’s Talk ➝]

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