In Hubble Exchange, the Decentralized Limit Order Book and Matching Engine are embedded within the block-building process of the app-chain. As users place orders, the orders are confirmed and indexed locally in the validator node, which also maintains all information about open positions, margins, pending funding, and margin ratio.
When a validator is selected as the block producer, the buildBlock function fetches active markets and open orders from the indexer, evaluates open positions for potential liquidations, runs the matching engine, and then relays these operations as local transactions before continuing the normal transaction bundling process.
This system ensures that order matching is as decentralized as the validator set of the hubblenet, resulting in a truly decentralized trading experience.

Using an application-specific blockchain, Hubble Exchange achieves the following objectives:

• It improves throughput and reduces transaction costs by optimizing the blockchain specifically for perpetuals.
• It decentralizes the matching engine, leading to the creation of a Decentralized Limit Order Book (DLOB).
• By using USDC as the gas token, the process of onboarding from centralized exchanges and other blockchains becomes much more frictionless.

High throughput, measured as transactions per second (TPS), and lower gas fees are essential for Market Makers (MMs) as they allow for rapid, cost-effective operations. When these conditions are met, MMs can offer much tighter spreads, providing traders with better quotes and improving the overall trading experience.