The Multilateral Matching Engine

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The Multilateral Matching Engine (MME) is a proposed way to exchange SRT through one selected reserve asset.

Competition determines reserve additions. The MME would help users exchange assets after those assets enter the reserve.

//Enter or leave through one asset

Ordinary redemption gives a holder a share of the full reserve basket.

For a selected-asset exit, the MME would exchange the other basket assets for the asset the holder wants.

For entry, it would assemble the required basket assets before creating SRT. The user would not need to arrange each trade separately.

Tokens explains ordinary basket deposits and redemption.

//Each basket exchange must complete

The required trades must complete together. If one required trade fails, the whole basket exchange fails.

Each trade must meet the user's price and quantity limits.

Atomic execution means that the required trades complete together. It protects the basket claim of remaining SRT holders.

An order can fill through several complete basket exchanges. Earlier completed exchanges remain valid if a later exchange fails.

The final redemption includes any small amounts left after earlier rounding. The route must account for these remaining amounts.

//Market availability matters

A route requires enough compatible trades to complete the basket exchange. The design does not create buyers or sellers for a missing trade.

Orders may wait when market supply is missing. An attempted exchange may fail.

Ordinary basket redemption provides another way to leave the reserve. It still requires transferable reserve assets.

//Status of the proposal

The proposed design sets accounting rules for a complete basket exchange. It does not establish deployed software or sufficient market availability.

The MME also does not determine competition reference prices. Competitions and Redistribute explain the fixed reference price competition.