KIP-87: Public Conditional Order Execution (SM v2.1.0)

Simple Summary

Extend Smart Margin (SM) account conditional order execution to the public (Smart Margin Account Upgrade v2.1.0).

Abstract

This proposal suggests enabling public access to conditional order execution and encouraging participation through the implementation of a novel fee mechanism. Furthermore, the introduction of an executor-supplied price feed[^1] as an alternative method for conditional order execution will enhance the promptness of execution, thereby mitigating latency issues arising from the Gelato Network.

Motivation

Limiting conditional order execution to a single service provider results in centralization and increases the risk of inadequate handling of conditional order execution, leading to a single point of failure. This approach also undermines the competitiveness and trustworthiness of our margin engine. While it may not be feasible to completely eliminate risks associated with on-chain smart contract automation, designing the system to incentivize non-gated conditional order execution can foster competition. This competition has the potential to significantly reduce latency and, in the worst-case scenario, result in a system that is similar to the existing one.

A proven approach demonstrated in Synthetix's perps v2 system through off-chain delayed order execution[^2], involves accepting and verifying a signed Pyth-provided price update as a parameter. By triggering conditional order execution with a verified price update, any keeper monitoring off-chain prices can promptly execute eligible conditional orders upon observing a satisfactory price corresponding to the given conditional order.

Specification

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