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Web3 Decentralized Derivatives Trading Platform for JibX

A Swiss-based Web3 firm sought to disrupt the decentralized trading landscape with the launch of an exceptionally fast derivatives exchange tailored for advanced crypto traders. Focusing on perpetuals and advanced risk instruments, the exchange aspired to provide an institutional-grade trading experience fully on-chain.

IdeaSoft was commissioned to develop the platform from scratch: a scalable, secure, and intuitive DEX with a custom matching engine, settlement layer, cross-chain support via LayerZero, and a trading UI designed for real-time decision-making. The ultimate deliverable was a full functional MVP that established the groundwork for the client’s future expansion in the DeFi space.

Client JibX

Services Business Analysis UI/UX Design Frontend Development Backend Development Smart Contract Development

Technologies React.js Go (Golang) Solidity LayerZero

Link jibx

Project Description

Project Overview

The customer, a Swiss DeFi startup, approached IdeaSoft with the idea of building a next-generation decentralized exchange (DEX) for perpetual derivatives trading. Unlike traditional AMM-based DEXs, the goal was to build an advanced platform that offers order book-based trading, high-throughput execution, and cross-chain transaction capabilities.

The platform was built to equal and surpass the performance and feature set of centralized exchanges (CEXs) without sacrificing being completely decentralized and transparent. The highest priority was the development of a custom trading engine. This included real-time trade and position tracking as well as the development of a user interface that could cater to professional traders without sacrificing performance.

The scope of the project was:

Frontend and backend development
Custom smart contract design
Cross-chain infrastructure using LayerZero
End-to-end DevOps and deployment support

The result was a sound MVP ready for production deployment and future scaling on new blockchain networks.

Target Audience

The platform was made especially for crypto-native institutions and high-frequency DeFi traders who demand more control, performance, and transparency in perpetual derivatives trading. The most important segments are:

Professional crypto traders who need advanced order types (market, limit, stop), leverage management, SL/TP settings, and real-time execution.
Institutional players and market makers that require a stable liquidity infrastructure and direct access to an on-chain matching engine.
Advanced DeFi users with experience handling wallets, on-chain transactions, and risk in volatile markets.
Developers and integrators who will build automated strategies, dashboards, or tooling on top of a DEX using public APIs and on-chain data feeds.

This audience needs performance, precision, security, and flexibility, alongside a smooth user experience with minimal friction.

Business Requirements

The client wished to fill a growing gap in the DeFi ecosystem: the lack of truly performant, decentralized exchanges for trading derivatives. Their business requirements were brief and technically aggressive:

Order book architecture. Custom, high-frequency order book to support complex trade logic and instant matching.
Matching & settlement engine. Instant execution and secure on-chain settlement of leveraged trades.
Cross-chain functionality. Integration with LayerZero for liquidity transfer and messaging between blockchains in the network.
Pro trading features. SL/TP management, multiple order types, leverage toggles, and complete position history.
Web3 wallet support. One-click onboarding via MetaMask, WalletConnect, and other non-custodial wallets.

Implemented Solution

IdeaSoft’s full-cycle team developed a decentralized derivatives platform engineered for speed, scalability, and security. Product architecture was developed from scratch to meet both functional and performance demands:

Web3 onboarding. Secure wallet integration with MetaMask, WalletConnect, and browser-native extensions.
Vault smart contract. Constructed to manage cross-chain asset custody and settlement via LayerZero messaging.
Order book system. Internally developed with red/black tree architecture to scale insertion and search operations.
Matching engine. Low-latency Go-based service with millisecond-order execution accuracy.
Settlement layer. On-chain secure and deterministic settlement of matched orders and ensuing balances.
Trading UI:
- Market, limit, and stop order entry
- Real-time charts and indicators
- Position dashboard with margin, PnL, SL/TP
- Order history and trade statistics
- Alerts and UI notifications for fills, price movements, and system updates

Cross-chain layer. Full implementation of the LayerZero protocol for liquidity bridging and secure messaging.
Developer tools. Public REST and WebSocket APIs for integration, reporting, and trading.

The MVP of the decentralized derivatives trading platform was successfully launched on time. The product met all performance, usability, and security benchmarks. The client reported high satisfaction and immediately engaged IdeaSoft for further feature development, performance scaling, and roadmap planning.

Challenges

The project was a unique blend of engineering, design, and infrastructure challenges:

Custom order matching logic. Unlike AMM-based models, the team had to develop a centralized-style order matching engine that had real-time responsiveness without compromising on trustlessness and decentralization.
Cross-chain coordination. To offer a smooth user experience and settlement logic across chains with LayerZero, tight coordination between backend services, smart contracts, and third-party protocols is required.
Latency and performance tuning. The platform needed to provide trading speed similar to centralized systems, demanding careful optimization of frontend rendering logic and backend services.
UX for pro traders. Finding the proper balance between sophisticated trading features and usability for a professional user base necessitated iterative user testing and prototyping.
Security and data integrity. With leverage and liquidation logic, it was critical to maintain the integrity of smart contracts. We did intense QA, unit testing, and simulation of trading scenarios.

Despite the complexity, the IdeaSoft team delivered a production-ready MVP that was stable. Our client got to market rapidly and continues building on a solid, future-proof foundation.

Delivery Time

5 months

Team Size

9 team members

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