Superposition

Superposition is the first DeFi-native Layer-3 built on top of Arbitrum. It includes a novel on-chain order book focused on steering order flow, with faster execution speeds, shared and permissionless liquidity, Account Abstraction, and zero fees while providing higher yields to Liquidity Providers and traders alike.

The problems with on-chain trading

The current issues with on-chain trading become apparent fast. 85% of all trading volume still happens on centralised exchanges, where the user gives up the ownership of their liquidity. We have recently seen how this can lead to misappropriation of user funds or leaking of valuable customer data.
Current DEX designs such as Automated Market Makers suffer from high gas fees, liquidity fragmentation and divergence losses among others. For existing Layer-1 designs, adversarial demand for blockspace creates friction in the form of MEV and oracle-related downtime and hacks. Existing alternatives aim to solve some of these problems but offer a poor developer experience and lack a mature ecosystem.

Superposition intends to solve these issues by offering a sector-specific infrastructure and unified platform, delivering a centralised user experience in a decentralised system. Utility Mining and ƒluid Assets will be integrated natively, ensuring that every transaction that occurs on the chain is incentivised.
It is the first DeFi-native Layer-3 leveraging the Arbitrum Nitro stack and Stylus, offering a seamless experience through Account Abstraction as an API, low fees, faster speeds and execution times and a composable application ecosystem. The order book will be accessible to everyone in a permissionless way, removing the need to bootstrap liquidity through incentive programs.

Why Arbitrum Layer-3?

Superposition is being built on top of Arbitrum and the EVM+ ecosystem and tooling, which is currently a more mature environment with deeper liquidity and a greater userbase. Superposition also improves upon the developer experience, as developers can leverage the abundant Ethereum tooling that currently exists and that they are familiar with, while accommodating dedicated throughput.
Superposition provides native primitives such as support for Account Abstraction, allowing developers to provide the feature natively through an SDK, allowing for easier on-boarding and for applications such as DEXs to support Web2 trading experiences easily. The Layer-3 will offer a native permissionless orderbook, allowing any developer to tap into shared and deep liquidity. With Superposition handling the foundational offerings, protocols can focus on innovating and offering unparalleled products to users.
Superposition will use 100x less memory and will be at least 10x cheaper and faster compared to existing offerings.