Dual Sharded Liquidity Market

Traditional execution models have distinct limitations:

• RFQ (Request for Quote): While good for large blocks, it relies on a single counterparty. If that maker fades the quote, the trade fails or executes at a poor price. It suffers from single-point failure and information leakage.

• CLOB (Central Limit Order Book) and AMM: Good for price discovery but fractures liquidity across many price levels. Large orders must "walk the book/liquidity", suffering high slippage.

Deluthium introduces the Dual Sharded Liquidity Market.

We implement a Bilateral Sharding Mechanism that shards (fragments) both the trading request from the user and the aggregated liquidity from providers into granular states optimally suited for matching. By breaking down the monolithic barriers of RFQ and CLOB, we create a continuous liquidity fabric.

• For Users: This ensures that trading requests are no longer treated as "lumps" that cause impact, but as fluid streams that match perfectly against available supply. Deluthium provides favorable quotes even for institutional-scale orders by avoiding the slippage of walking a single book.

• For Market Makers: Liquidity provision of any scale is utilized efficiently. MMs can fill specific "shards" of orders that fit their inventory risk, drastically improving capital efficiency.