> For the complete documentation index, see [llms.txt](https://docs.gammaswap.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gammaswap.com/introduction/technical-overview.md). # Technical Overview ### Architecture GammaSwap utilizes an architecture similar to how an L2 operates with an L1. The protocol matches orders in an off-chain private ledger where matched orders are aggregated to be sent in batch to the public settlement chain for finality. This two step system leverages off-chain matching for speed and on chain settlement for security and transparency.\ \ Order batches are submitted to Base at predetermined intervals ranging from 10 seconds to a few minutes, depending on Base network congestion. Orders are filled based on time-price priority. Given V2 is a margin based exchange, a user can trade against themselves to close or flip an order's direction. This architecture also opens up cross margining opportunities for higher capital efficiency in the future. ### Advantages Current latency expectations are around 100-200ms round trip, which if maintained in production, would make GammaSwap V2 the fastest on-chain prediction market. Most other on-chain prediction markets use a conditional token framework (CTF) where on-chain tokens are minted and burned each epoch. This decreases available liquidity since there's a dependency on minting new liquidity before trading is possible. The margin based architecture allows anyone with USDC in the platform to supply liquidity to the market at any time. ### Proximity The GammaSwap matching engine is located in Singapore which is in the same region as Bybit and near major exchanges like Binance and Hyperliquid in Tokyo. This is an advantage for market makers by reducing latency and improving reaction time. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.gammaswap.com/introduction/technical-overview.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.