ParabolicParabolicDOCS
Architecture

System Architecture

Hybrid offchain/onchain stack — sub-100ms matching with on-chain custody on Base.

Parabolic uses a hybrid offchain/onchain architecture. Low-latency operations (order matching, risk checks, oracle aggregation) run offchain for speed. Fund custody, settlement, and insurance run on-chain on Base for trustlessness.

Three-layer stack
  1. 1
    User Layer — Web app + embedded wallet (Privy). Fiat onramp via MoonPay/Stripe → USDC on Base.
  2. 2
    Offchain Engine — Matching engine, risk engine, oracle aggregator, orderbook manager, API gateway. Sub-100ms latency. Batched settlements every ~10 seconds.
  3. 3
    Onchain (Base) — Vault contract (fund custody), Clearinghouse (positions/margin), Settlement contract (final payouts), Insurance Fund, Oracle Registry.
Smart contracts (Base)
Vault — Holds all user USDC. Only the Clearinghouse can move funds between accounts.
Clearinghouse — Core accounting: positions, margin balances, realized P&L. Processes batched trade settlements atomically.
Insurance Fund — USDC pool absorbing liquidation deficits. Funded by 20% of fees + liquidation surplus.
Settlement — Reads final oracle price at game end. Distributes funds: winners get $1, losers get $0.
Oracle Registry — Stores latest oracle prices, approved data sources, and game metadata.

Fees

Taker 5 bps, maker rebates, settlement and liquidation fees.

Oracle System

Multi-source weighted-median oracle with mark-price smoothing.

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