Infrastructure

Infrastructure

Apr 6, 2025

Apr 6, 2025

Verifiable Fairness: The DEX Advantage

Centralized exchanges ask for trust. DEXs provide proof. Discover how cryptographic verification and FIFO matching guarantees make prediction markets provably fair.

In traditional exchanges, you trust the venue. You trust they're matching orders fairly. You trust they're not front-running. You trust they're not showing your orders to their favorite traders first.

In prediction markets, that trust is even more critical.

When you're trading binary outcomes worth 0 or 100, order flow is incredibly toxic. Getting filled means someone thinks you're wrong. Getting filled first when you should be last means the house is dealing against you.

Centralized prediction markets ask you to trust them. Netty proves it.

Every trade on Netty is cryptographically verifiable:

  • FIFO matching enforced by rollup state

  • No privileged order flow

  • No invisible orders

  • No "oops, the system made a mistake"

Our app-specific rollup doesn't just record trades—it proves they matched correctly. Price-time priority isn't a policy. It's mathematics.

This matters most when it matters most: during volatile events. When CPI prints hot and everyone's rushing to trade, centralized venues can "have issues." Orders disappear. Matches seem suspicious. The house always seems to be on the right side.

With Netty, the matching engine's logic is public. The state transitions are provable. If we violate FIFO, the proof fails. If we front-run, it's visible on-chain.

The DEX advantage isn't just about custody—it's about credibility.

When you're trading against the house, you want to know the house can't cheat. When you're trading against other professionals, you want to know everyone plays by the same rules.

Prediction markets without verifiable fairness are asking professionals to trade in a game where the dealer sees your cards.

Netty makes the game provably fair.