Building Infrastructure for the Future of Finance on Top of Ethereum
summary
Custom L2 runs finance primitives with ZK circuits enforcing first-in-first-out order matching and liquidation rules, while a centralized sequencer signs every order but cannot break the math. A prover cluster of 10,000–15,000 machines aggregates up to 800,000 actions per proof and posts succinct verifiers to Ethereum L1. Measured peaks: 811 million transactions in 24 hours, average >6,000 TPS with spikes toward 20,000, sub‑200 ms latency, $140B volume over three months, $7.5M revenue, proving costs ~10–20% of revenue, and an on‑chain escape hatch for asset recovery.
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chapters (27)
- 0:00Introduction
- 0:41TradFi and DeFi Merging at ETHConf
- 1:05What Lighter Is: Perps and Spot Trading
- 1:29Focusing on the Infrastructure Side
- 2:11Why Finance Has Few Primitives
- 2:32Building a Custom L2 for Finance
- 3:05Why Security and Verifiability Matter
- 3:33How Signed Orders and the Sequencer Work
- 4:13The Prover Cluster of 15,000 Machines
- 4:38Aggregating Proofs and Posting to Ethereum L1
- 5:12Public Rules: First In First Out
- 5:45Why Fair Liquidation Rules Matter
- 6:19Peak Stats: 811 Million Transactions in a Day
- 6:51Thousands of Provers on Mixed Infrastructure
- 7:15Why It Doesn't Matter Who Generates the Proof
- 7:53Non-Custodial Design and the Escape Hatch
- 8:57Extending Rules to Asset Administration
- 9:30Custom Rules for Permissioned and Tokenized Assets
- 10:02Fairness Proven by Math Block by Block
- 10:21A Permanent Record on Ethereum
- 10:55Daily Active Users and TPS Metrics
- 11:21Sub 200 Millisecond Latency
- 11:45The Most Efficient L2 Needs the Most Secure L1
- 12:18Why Custom Circuits Keep Proving Costs Low
- 12:38Strong Margins and Low Cost Structure
- 13:14The Magic of Proving Finance With Math
- 13:40LighterVM and Composability With Axiom
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