LFG Perp Architecture

LFG Perp is built on a modern, scalable architecture that combines the security of blockchain with the performance needed for high-frequency trading.

System Overview

The @oraichain/lfg-client-js SDK is a TypeScript client library that developers use to interact with the Indexer API and Validator RPC. It’s not part of the core architecture, but rather a convenient tool for building applications.

Core Components

1. LFG DEX Side Chain

LFG DEX runs as an independent side chain connected to Oraichain mainnet via IBC (Inter-Blockchain Communication):

Independent Chain

Dedicated Infrastructure

Own validator set
Optimized for trading
High throughput for orders
Custom trading modules

IBC Connected

Oraichain Integration

Asset transfers via IBC
Oracle price feeds from mainnet
Shared security guarantees
Cross-chain interoperability

Specialized Design

Trading Optimized

Fast block times (~1s)
Efficient order matching
Low latency execution
High transaction throughput

Cosmos SDK

Built on Cosmos

Tendermint consensus
Modular architecture
Proven technology
Easy upgrades

2. Oraichain Mainnet

The main Oraichain blockchain that LFG DEX connects to:

IBC Hub

Cross-Chain Bridge

IBC protocol support
Asset transfers to LFG DEX
Multi-chain connectivity
Secure bridging

Oracle Services

Price Feeds

Decentralized oracles
Multiple data sources
Price aggregation
Real-time updates

Security

Shared Security

Validator network
Staking mechanism
Slashing conditions
Network protection

Governance

Chain Governance

Proposal system
Community voting
Parameter updates
Upgrade coordination

3. LFG Trading Modules

The core trading functionality implemented as Cosmos SDK modules on the LFG side chain:

Perpetuals Module
Clob Module
Bridge Module
Oracle Module

Manages perpetual futures contracts and positions.Responsibilities:

Order matching
Position management
Liquidation logic
Funding rate calculations
Collateral management

Features:

Multiple markets
Cross-margin support
Risk parameters per market
Emergency shutdown capability

4. Indexer Service

High-performance read-only API for market data (off-chain service):

Architecture

Components:

PostgreSQL database for historical data
Redis for caching hot data
WebSocket server for real-time streams
REST API for queries

Data Flow:

Listens to blockchain events
Processes and indexes data
Stores in optimized format
Serves via API endpoints

Performance

Optimizations:

Indexed database queries
Aggressive caching strategy
Denormalized data for reads
Connection pooling
Load balancing

Metrics:

< 10ms query latency
1000+ req/s throughput
99.9% uptime
Real-time updates

Data Provided

Market Data:

Orderbook snapshots
Trade history
Price candles
Market statistics
Funding rates

Account Data:

Balances
Positions
Order history
Fill history
PnL calculations

5. Client SDK (@oraichain/lfg-client-js)

A TypeScript library that simplifies interaction with LFG DEX:

// SDK wraps the API calls
const client = await CompositeClient.connect(network);

// Read from Indexer API
const markets = await client.indexerClient.markets.getPerpetualMarkets();

// Write to Validator RPC
const tx = await client.placeShortTermOrder(/* ... */);

What the SDK Provides:

Type-safe API wrappers
Connection management
Transaction signing helpers
Error handling utilities
Convenient abstractions

The SDK is not part of the core LFG DEX infrastructure. It’s a developer tool that makes it easier to build applications that interact with the chain.

Data Flow

Order Placement Flow

“App” can be a web interface, trading bot, or any application using the SDK or direct API calls.

Market Data Flow

Security Architecture

Multi-Layer Security

Wallet Security

User Responsibility:

Private key management
Transaction signing
API key security
Device security

Protocol Security

On-Chain Protection:

Margin requirements
Liquidation engine
Position limits
Circuit breakers

Oracle Security

Price Feed Protection:

Multiple data sources
Outlier detection
Staleness checks
Emergency pause

Infrastructure Security

Operational Security:

DDoS protection
Rate limiting
API authentication
Encrypted connections

Liquidation System

The liquidation system ensures exchange solvency:

Monitoring
Execution
Protection

Continuous Checks:

Every block processes margin checks
Calculates maintenance margin
Identifies undercollateralized positions
Flags accounts for liquidation

Scalability

Current Capacity

Throughput

1000+ TPSTransactions per second supported by Oraichain

Latency

< 1s FinalitySub-second block time for fast confirmations

Orders

100k+ OrdersConcurrent open orders supported

Future Scaling

Layer 2 Integration

Potential rollup integration for even higher throughput while maintaining security.

Sharding

Market-specific sharding to distribute load across validator set.

Optimistic Execution

Parallel transaction processing for increased throughput.

Technology Stack

LFG DEX Side Chain

Component	Technology	Purpose
Consensus	Tendermint BFT	Byzantine fault tolerance
Framework	Cosmos SDK	Modular blockchain development
Language	Go	Chain implementation
IBC	IBC Protocol	Cross-chain communication

Oraichain Mainnet

Component	Technology	Purpose
Consensus	Tendermint BFT	Network consensus
Framework	Cosmos SDK	Blockchain framework
IBC	IBC Protocol	Inter-chain bridging
Oracles	Custom Modules	Price feed infrastructure

Indexer

Component	Technology	Purpose
Database	PostgreSQL	Historical data storage
Cache	Redis	Hot data caching
API	Node.js/TypeScript	REST and WebSocket server
Queue	Bull	Background job processing

SDK

Component	Technology	Purpose
Language	TypeScript	Type-safe development
HTTP	Axios	API requests
WebSocket	ws	Real-time streams
Crypto	@cosmjs	Transaction signing

Network Topology

Validators
RPC Nodes
Indexer Nodes

Validator Network:

Geographic distribution
Redundant infrastructure
Load balancing
Failover capability

Responsibilities:

Block production
Transaction validation
State consensus
Network security

Monitoring & Observability

Blockchain Metrics

Block time
Transaction throughput
Validator health
Network latency

Application Metrics

API response times
Order placement rate
Liquidation events
Funding rate history

System Health

CPU and memory usage
Database performance
Cache hit rates
Connection pools

User Activity

Active traders
Order volume
Position sizes
Unique addresses

Next Steps

Start Building

Begin developing on LFG Perp

SDK Reference

Explore the SDK documentation

Trading Guides

Learn how to trade

Security

Security best practices

​LFG Perp Architecture

​System Overview

​Core Components

​1. LFG DEX Side Chain

Independent Chain

IBC Connected

Specialized Design

Cosmos SDK

​2. Oraichain Mainnet

IBC Hub

Oracle Services

Security

Governance

​3. LFG Trading Modules

​4. Indexer Service

​5. Client SDK (@oraichain/lfg-client-js)

​Data Flow

​Order Placement Flow

​Market Data Flow

​Security Architecture

​Multi-Layer Security

Wallet Security

Protocol Security

Oracle Security

Infrastructure Security

​Liquidation System

​Scalability

​Current Capacity

Throughput

Latency

Orders

​Future Scaling

​Technology Stack

​LFG DEX Side Chain

​Oraichain Mainnet

​Indexer

​SDK

​Network Topology

​Monitoring & Observability

Blockchain Metrics

Application Metrics

System Health

User Activity

​Next Steps

Start Building

SDK Reference

Trading Guides

Security

LFG Perp Architecture

System Overview

Core Components

1. LFG DEX Side Chain

2. Oraichain Mainnet

3. LFG Trading Modules

4. Indexer Service

5. Client SDK (@oraichain/lfg-client-js)

Data Flow

Order Placement Flow

Market Data Flow

Security Architecture

Multi-Layer Security

Liquidation System

Scalability

Current Capacity

Future Scaling

Technology Stack

LFG DEX Side Chain

Oraichain Mainnet

Indexer

SDK

Network Topology

Monitoring & Observability

Next Steps