Bazaar

Introduction

Bazaar is a fully permissionless perpetual-futures protocol for Arbitrum. Any asset with a Pyth price feed — crypto, equities, FX, indices — can be listed through an UMA Optimistic Oracle assertion and traded on a fully on-chain central limit order book, margined in USDC.

The protocol is immutable: no owner, no pauser, no upgradeable proxies, no governance token. Every privileged action is either fully permissionless, economically bonded, or adjudicated by UMA's optimistic oracle.

⚠️ Status: pre-audit, work in progress — not yet deployed. There is no official deployment on any network; do not use with real funds.

Vision

The aim is in the name: a bazaar — an open marketplace where anything with a price can be traded by anyone, against anyone.

Every role a traditional exchange reserves for itself is, here, an open job — anyone can take it, whether an individual trader or a professional independent operator. Anyone can list a market. Anyone can run a sequencer and match orders. Anyone can keep positions honest and collect the bounties for it. Anyone can capitalize the insurance backstop and earn its fees. Anyone can vote a dying market into settlement. There is no company behind the counter — the marketplace is owned and operated by its own participants.

The protocol itself is immutable and unowned, not as ideology but as product: a marketplace for everything can only stay neutral if no one — no team, no company, no committee — is in a position to say no.

Why Bazaar is built the way it is

Three design commitments drive everything else:

1. The book is on-chain; only the sorting is off-chain. Orders rest in contract storage. A permissionless, bonded sequencer periodically submits the resting order IDs in sorted lists, and the contract re-verifies the sort and matches deterministically in three passes. This keeps the matching semantics trustless while avoiding the gas cost of on-chain insertion into a sorted book. Sequencer honesty is not assumed — it is enforced by fraud proofs: censoring an order or mislabeling a batch as price-stale is provable on-chain and slashes the sequencer's bond.

2. Anything with a feed can be a market — including assets that stop existing. Perps on equities and real-world assets need answers that crypto-only protocols never face: What happens off trading hours? What happens when the company is acquired, the feed is decommissioned, or the asset redenominates? Bazaar has a stale-oracle trading regime for market closures and five independent termination paths that guarantee every market can always be wound down to cash settlement — without anyone's permission.

3. Every failure mode ends in a defined state. Losses cascade through a fixed waterfall: liquidation → the vault unwinds inherited inventory on the book → auto-deleveraging Dutch auction → per-pair insurance fund → pro-rata profit haircuts with principal always reserved → termination. There is no path that strands funds behind a revert, and no path that pays out first-come-first-served.

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