Settlement Data Providers (SDPs)
Settlement Data Providers (SDPs) supply the crucial settlement data for the hybrid-DEX to operate.
They are similar to:
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.
Running an SDP
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).
In general, an SDP does the following:
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.
However, to properly connect to the TXA Decentralized Settlement Layer (DSL), aspiring SDP operators must also do the following:
Stake the TXA token required for their particular tier of operation. More information on this will be released shortly.
Undergo a sign-up or KYC depending on the jurisdiction in which they operate the SDP.
Add collateral to their SDP's smart contract
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