HOT API

Valantis Labs operates an API to which both Solvers and Liquidity Managers connect.

• Solvers request a price and volume for a particular token pair.

• The liquidity Manager constructs a Signed Quote to match or beat the Solver’s requested price, net of gas.

• Liquidity Manager optionally attaches an AMM state update to the Signed Quote.

Decentralization

Currently, the HOT signer is a centralized component operated by Valantis Labs and partner liquidity managers such as Arrakis. However, the infrastructure is designed to support a decentralized network of liquidity managers, which will compete to provide the best price execution for LPs in the future.

Furthermore, with smart contract invariants enforced on-chain, LPs only need to place limited trust in the API operator, even if the API is centralized. The risks and trust assumptions associated with different actors are discussed comprehensively in the Risks and Trust Assumptions section.

By progressively decentralizing the API components over time, HOT can also implement designs such as Order Flow Batch auctions without requiring any changes to the smart contracts.