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Overview

Flashnet leverages several key primitives facilitated through Spark to enable secure, efficient trading. All solutions are built on the foundation of non-custody and the atomic swap primitive. Depending on the product requirements, we implement different approaches:
  • For trustless flows like our RFQ system, we simply rely on vanilla atomic swaps with no external coordination other than quote discovery
  • For advanced solutions like our CLOB or AMM, we combine TEEs and validators to enable intent-based execution at settlement — funds stay completely in the user’s control and trust is only required during execution.

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Core Primitives

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Atomic Swap

The atomic swap is the fundamental building block of Flashnet. On Spark, atomic swaps are implemented using adaptor signatures, where the exchange is enforced by L1 validation and Bitcoin consensus rules. This creates a trustless exchange mechanism between two parties.

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Intents System

Our intent-based execution engine is powered by validators operating within TEEs. All trading interactions are modeled as maker/taker relationships. The engine verifies that both parties have properly expressed their intent to trade and then securely settles the transaction according to the agreed terms. Two key design principles guide our intent-based execution environment:
  1. Minimal exposure window: Each execution environment is designed with the shortest possible lifecycle, ensuring funds are only exposed during the brief settlement period and not subject to long-term holding risks unless the user explicitly opts to hold. (market makers, LPing, etc. where it makes more sense to have a long-term exposure)
  2. Isolated MPC wallets: Rather than using a single shared MPC wallet, each user operates with multiple dedicated MPC wallets, ensuring that if one wallet is compromised, the others remain secure and isolated from system-wide risk.
This engine is at the core of our trust-minimized products like Flashnet Trade and Flashnet AMM. It distributes trust across multiple validators, who do intent verification before signing off on transactions to be executed natively on Spark. This enables us to have quasi-smart contract execution without the overhead of a full-fledged smart contract VM, while still providing similar security guarantees. You can think about this as an application specific validation layer for Spark.

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AMM

Our AMM operates within our intent based execution environment, where liquidity providers interact through MPC wallets. Users can swap tokens/BTC or contribute liquidity to these pools. The AMM supports different pricing mechanisms to suit different trading needs, including constant product, custom bonding curves, and concentrated liquidity positions.

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Centralized Limit-Orderbook

Our CLOB powers the Flashnet Trade product with a state-of-the-art matching engine which matches orders based on price / time priority. Key components include:
  • Advanced matching engine for efficient order execution
  • Settlement via our intent-based execution engine with validator oversight
  • User-controlled delegated trading wallets using threshold signature schemes
  • Safety mechanisms allowing users to:
    • Exit unilaterally to L1
    • Coordinate exit via Spark transaction
    • Cancel orders at any time to revoke approval and recover locked funds
You can learn more about the CLOB in the how it works section of Flashnet Trade.