Transaction Order Bundling

United Protocol offers multiple layers of order bundling to improve user experience and performance, outlined in the sections below.

Client Order Bundling

United Protocol transactions can be composed of orders going to multiple trading markets (even those spanning smart contracts, i.e. orders to both a BTC/USDC spot pair and a BTC perpetual exchange). During block processing, United Protocol will correctly route all orders to their respective smart contracts. This will help market makers cut down on gas costs associated with updating their positions.

Chain Level Order Bundling

Each matching engine related transaction will require instantiating the virtual machine (VM). Rather than having multiple VM instantiations, United Protocol bundles all orders across all transactions (per market) and only performs one VM instantiation. This reduces latency by roughly 1ms per order, which is substantial in periods of high throughput.

Trading Fees

The matching engine will not charge any trading fees at the chain level at launch. Governance can choose to start applying trading fees in the future. Decentralized exchanges that are building on top of Sei can add in their own trading fees depending on the experience they want to offer their users. This would be defined at the smart contract level, and will be easily configurable for developers.