Orderbook & Request-for-Quote (RFQ)

Arbitrum One vs. Arbitrum Nova

The Orderbook architecture is unique in that two separate chains are utilized. The primary chain is Arbitrum One. Just like the v3 protocol, it's the primary chain where all orders are filled, cancelled, and positions settled/exercised. This functionality can be accessed using the IPool interface, which resides on Arbitrum One, or via the Premia Blue app. Users of the Orderbook must have a valid address on Arbitrum One. All collateral and approvals to transfer collateral must be on Arbitrum One.

Why Arbitrum Nova? To be a true decentralized tokens options exchange, Premia believes the order book should also be decentralized so that all parties can ensure their orders are not being front ran or censored. A centralized off-chain order book may be subject to unwanted behaviors; thus, Premia decided to use Arbitrum Nova due to its low cost and fast transaction speeds to reflect the order book on-chain.

Providing quotes for the order book are done through Arbitrum Nova. Quotes are nothing more than emitted events of order details that are signed by the maker of a transaction that will ultimately process on Arbitrum One. There are two primary ways to emit quotes to the order book:

  1. Directly through the IOrderbookStream interface using add. This contract resides on Arbitrum Nova and requires a maker to have an account with an ETH balance to pay for gas fees.

  2. Using the Premia Orderbook API, Premia will publish the quote on Arbitrum Nova on the maker's behalf. This is a rate-limited / tiered feature.

These orders do not earn maker rebates or liquidity mining rewards, ensuring concentrated liquidity and vaults stay competitive long-term.

The order book can be accessed directly via the Premia Blue app, API, or the SDK.

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