What is Deepwaters?


Deepwaters is a validated, trustless exchange built with a mission of provable fairness, transparency, protected order flow, and secure custody.

Background (The Problem)

Current exchanges place traders at a disadvantage. The problems affecting trading platforms can be separated into two categories:
  1. 1.
    Lack of confidentiality and poor integrity of order flow before it is recorded in the publicly available order book, resulting in:
    • Front-running
    • Order flow reordering and blocking
    • Spread deterioration
    • Poor fill rates
    • Privileged rent seeking
  2. 2.
    Violations of the custody of customer funds, resulting in rehypothecation and commingling. This causes customer funds loss, most often during tail risk events.
Decentralized financial platforms attempted to solve these problems, but brought about its own set or problems which manifested in many of the same ways (poor execution, loss of funds, etc.). DeFi also involved sacrifices in efficiency and throughput; efforts to solve those problems have largely involved a trade-off in decentralization and/or trustlessness. This is the paradigm in which current markets are trapped.


Deepwaters Beta is the fusion of traditional finance and blockchain technology into a Hybrid Architecture, leveraging proven concepts from both. Deepwaters aims to bring maturity to DeFi and enable systems that power the next generation of financial applications.
At Deepwaters, we are building an exchange the right way. The formula is simple:
  1. 1.
    Transparency: Open-source code and business logic around exchange operations (trading, custody, etc.)
  2. 2.
    Fairness: All traders and customers are treated equally. We eliminate information asymmetry, PFOF, and any form of prioritized internalization of orders (no party get’s privileged access to order flow).
  3. 3.
    Provability: Rather than asking customers to “trust us,” we are building a system that allows anyone to easily and independently verify that our software [and by extension that same open-source business logic] is running on Deepwaters systems. This is done by utilizing remote attestation, a feature of ‘confidential computing’ (built upon Intel SGX and other Trusted Execution Environments). This effectively enforces honest behavior and prevents any possibility of malfeasance.
Last modified 8mo ago