Self-Custodial Asset Exchange on Bitcoin Lightning

L2.auction exchange

Sellers and buyers place their orders in an order book with an L2.auction instance.

  • Central limit order book for
    1. increased liquidity
    2. efficient price discovery
  • Double auction model
Asset transfer

The assets are transferred over the Lightning network in an atomic swap in exchange for BTC.

  • Self-custodial, instantaneous order placement
  • Continuous order matching
  • Async order settlement

L2.auction is powered by Bitcoin Lightning and leverages two important features

  • Off-chain atomic swaps
  • Client-side validation asset protocols (RGB / Taro)
Order book aggregation across instances

Several L2.auction instances can connect and aggregate their order books.

  • Increased liquidity
  • Decreased centralization
Trust model

L2.auction is completely non-custodial and virtually trustless. To offer speed and efficiency it requires a certain level of centralization though. 

  • Self-custodial 
  • Open Source

Prototype demo

This prototype demo shows buy and sell transactions between two clients through an L2.auction instance.