Settlement Data Providers (SDPs)
Settlement Data Providers (SDPs) supply the crucial settlement data for the hybrid-DEX to operate.
- Validator Nodes - proof-of-stake blockchains typically have nodes that validate incoming transactions and reach consensus on a block. SDPs are similar, except that they validate incoming trades and reach consensus on a set of obligations.
- Miners - SDPs are kind of like proof-of-work miners as well, but instead of collecting transactions, they collect trades on the hybrid-DEX. In both cases, because the miner or SDP does work, they can collect a fee for their services.
The SDP software is provided open-source by Project TXA and can be installed on any computer.
At its core, running an SDP is a way for anyone to earn fees by helping support the TXA Decentralized Settlement Layer (DSL).
- Records trades that are broadcast by the Hybrid-DEX (hDEX).
- Tracks and maintains the trading obligations that exist between traders.
- Participates in a settlement/withdrawal request by traders. A settlement/withdrawal request spurs the following:
- A trader will request settlement for all their trades through the DSL smart contracts.
- A selection of "qualified" SDPs will occur. Qualified SDPs are those that have sufficient collateral to participate in the settlement.
- The set of qualified SDPs will be reduced to the minimum number required for quorum.
- The final set of SDPs will come to consensus on the settlement obligations and report them onchain in case of future disputes.
- The SDP will charge a fee for supplying the settlement data obligations.
Key parameters such as fees, collateral, and minimum SDP requirements are what make the TXA DSL DAO extremely important.
- 1.Stake the TXA token required for their particular tier of operation. More information on this will be released shortly.
- 2.Undergo a sign-up or KYC depending on the jurisdiction in which they operate the SDP.
- 3.Add collateral to their SDP's smart contract