Signet's Settlement System

Traditional rollups lock capital and introduce:

• Multi-step withdrawal processes: Initiate → Wait → Release
• Multi-day fraud proof windows: Capital remains locked and unproductive

This design creates a poor experience for users, builders, and solvers.

Market-Based Settlement

Signet eliminates the complicated withdrawal process and unnecessary delays through swaps by:

1. Synchronized Block Production

• Identical timestamps ensure deterministic ordering
• Fork-choice rule maintains consensus alignment

2. Atomic Cross-Chain Execution

• Same-block finality
• Conditional transaction enforcement

3. Market-Driven Price Discovery

• Competitive filler ecosystem
• Real-time liquidity provision

Signet is the only chain to achieve same-block cross chain settlement and it starts with our synchronized block architecture.

Concurrent Block Production

This 1:1 coupling enables deterministic state transitions. Every Signet block corresponds to exactly one Ethereum block, eliminating timing discrepancies.

Order System Architecture

Orders express atomic intent through Permit2, enabling gasless authorization:

 1pub struct SignedOrder {
 2    pub permit: Permit2Batch,      // Single signature authorization
 3    pub outputs: Vec<Output>,      // Desired assets and destinations
 4}
 5
 6pub struct Output {
 7    pub token: Address,            // Asset identifier
 8    pub amount: Uint<256, 4>,      // Precise amount
 9    pub recipient: Address,        // Destination address
10    pub chainId: u32,             // Target chain
11}

Order Lifecycle:

1. Creation: User signs intent with ~10 minute validity window
2. Discovery: Broadcast to transaction cache for filler evaluation
3. Execution: Atomic settlement within single block
4. Finalization: Immediate availability on destination chain

Settlement Mechanics: Inverted Execution

Signet’s approach to atomicity is in transaction ordering enforcement:

The OrderDetector enforces atomicity by validating that every order has corresponding fills before allowing transaction execution. This prevents partial settlements through deterministic state validation:

 1impl OrderDetector {
 2    fn validate_transaction(&self, tx: &Transaction) -> Result<(), Error> {
 3        // Check if transaction emits Order event
 4        if let Some(order) = self.detect_order(tx) {
 5            // Verify all outputs have corresponding fills
 6            for output in order.outputs {
 7                if !self.has_sufficient_fill(output) {
 8                    return Err(Error::InsufficientFill);
 9                }
10            }
11            // Consume fill amounts to prevent double-spending
12            self.consume_fills(order.outputs);
13        }
14        Ok(())
15    }
16}

Key Benefits:

• Fill transactions must mine before Initiate transactions
• Failed fills result in automatic Initiate rejection
• No intermediate states or partial executions

Capital Efficiency

Traditional rollups lock capital for extended periods. Signet enables continuous deployment:

Note: While traditional rollups process transactions continuously, settlement requires days. Signet settles every transaction in seconds.

This enables strategies previously impossible on other chains:

1. Intra-Block Arbitrage

• Execute multiple trades within single 12-second block
• Compound returns through circular trading paths
• Eliminate sequential execution risk

2. Dynamic Inventory Management

• Real-time cross-chain balance optimization
• Just-in-time liquidity provision
• Zero idle capital

3. Multi-Order Aggregation

• Net positions across multiple orders
• Reduce transaction costs through batching
• Maximize capital efficiency per block

Bundle Construction

Fillers aggregate multiple orders into atomic execution bundles:

 1async fn construct_bundle(&self, orders: &[SignedOrder]) -> Result<SignetEthBundle> {
 2    // Aggregate orders by destination chain
 3    let aggregated = self.aggregate_by_chain(orders);
 4
 5    // Sign fills for each destination
 6    let signed_fills = self.sign_fills(&aggregated).await?;
 7
 8    // Build transaction sequence with proper ordering
 9    let txs = self.sequence_transactions(&signed_fills, orders).await?;
10
11    // Extract cross-chain coordination data
12    let host_fills = signed_fills.get(&ETHEREUM_CHAIN_ID);
13
14    // Atomic bundle with deterministic execution
15    Ok(SignetEthBundle {
16        host_fills,     // Ethereum-side actions
17        bundle: EthSendBundle {
18            txs,        // Signet-side transactions
19            block_number: self.target_block(),
20            reverting_tx_hashes: vec![], // No reverts allowed
21        },
22    })
23}

Error Handling:

• Invalid signatures → Bundle rejected pre-execution
• Insufficient liquidity → Fill transaction reverts
• Gas exhaustion → Entire bundle fails atomically

Market Efficiencies:

Multiple fillers evaluate each order simultaneously, creating competitive pricing:

• Multiple fillers evaluate each order simultaneously
• Competition drives spreads toward equilibrium
• Price discovery occurs every 12 seconds
• No single filler controls market pricing
• Capital availability across chains

Filler Infrastructure

Implement custom market-making strategies using the Signet SDK:

 1// Custom filler implementation
 2impl FillerStrategy for MyFiller {
 3    async fn evaluate_order(&self, order: &SignedOrder) -> Option<FillDecision> {
 4        // Implement custom pricing logic
 5        let profit_margin = self.calculate_margin(order)?;
 6
 7        // Check inventory across chains
 8        let has_liquidity = self.check_inventory(order).await?;
 9
10        // Evaluate competition
11        let competitive = self.estimate_win_probability(order);
12
13        if profit_margin > self.min_margin && has_liquidity && competitive > 0.3 {
14            Some(FillDecision::Accept)
15        } else {
16            None
17        }
18    }
19}

• Gas cost optimization
• Inventory rebalancing costs
• Competition assessment
• Risk-adjusted profit margins

Protocol-Level Markets

Signet’s architecture embeds market mechanics at the protocol level:

Every application built on Signet is enabled with instant cross-chain settlement.

Cross-Chain Settlement Opportunities

Whether it’s building user applications, providing liquidity, or executing orders, every builder benefits from the speed of settlement to Ethereum:

• No asynchronous state risks between chain operations
• No wrapped token complexity or liquidity fragmentation
• No artificial constraints on capital deployment
• No settlement uncertainty affecting execution

Build with us

The best way to get started is with our docs or getting in touch if you have any questions.

Get Involved:

• Developer interest form
• Documentation feedback

Market Participants:

• Filler examples: Complete implementation patterns
• Market dynamics: Participant roles and incentives

Order System:

• Contract interfaces: Permit2-based order creation
• SDK primitives: Type-safe order handling

Bundle Construction:

• Atomic execution: Transaction sequencing tools
• Simulation framework: Pre-execution validation