Technology & Architecture

GRID is powered by enterprise-grade infrastructure designed for reliability, performance, and security. Every component is carefully selected and implemented to ensure consistent fee generation.

Technology Stack

Core Technologies

🦀 Rust Core

The entire LP engine is written in Rust, providing:

Memory safety without garbage collection
Zero-cost abstractions for maximum performance
Fearless concurrency for parallel processing
Compile-time guarantees preventing runtime errors

⚡ Solana Blockchain

Built on Solana for its unique advantages:

Sub-second transaction finality
Minimal transaction costs (~$0.00025)
High throughput for frequent rebalancing
Robust ecosystem of DeFi protocols

🌊 Orca Whirlpools

Concentrated liquidity DEX providing:

Capital-efficient liquidity provision
Customizable price ranges
Automatic fee collection
Battle-tested smart contracts

📊 Drift Protocol

Perpetual futures for delta hedging:

Real-time delta management
Deep liquidity for large positions
Cross-margined efficiency
Automated position management

System Architecture

Actor-Based Design

GRID uses a sophisticated actor system architecture where each component operates independently:

GridCoordinator (Orchestrator)
├── Tight Position Actor
├── Central Position Actor
├── Wide Position Actor
├── Safe Position Actor
└── Hedge Engine (TypeScript)

Each actor:

Maintains its own state and message queue
Operates asynchronously and independently
Has isolated error boundaries
Communicates through message passing

Message Flow

The system uses three types of messages:

Commands: Instructions to perform actions
Events: Notifications of state changes
Responses: Results of command execution

This architecture ensures:

No single point of failure
Graceful degradation under stress
Easy scaling and maintenance
Clear separation of concerns

State Management

Position Registry

All position state is persisted and synchronized:

Atomic writes prevent corruption during crashes
On-chain sync reconciles local state with blockchain
Provides audit trail of all operations
Supports recovery from any failure

Risk Management

Multi-Layer Protection

The system implements multiple layers of risk controls:

Position Limits

Maximum capital allocation per position type
Enforced rebalancing frequency limits
Minimum time between adjustments
Maximum slippage tolerance

Delta Hedging

LP Delta = Sum of (SOL amount × SOL price)
Net Delta = LP Delta + Drift Position Delta
Target = Net Delta → 0

The hedge engine:

Monitors delta continuously
Triggers hedging at configurable thresholds
Uses cross-margin for capital efficiency
Automatically unwinds when unnecessary

Emergency Controls

Circuit breakers for extreme volatility
Automatic position closure on errors
Capital preservation mode
Manual override capabilities

Monitoring & Recovery

Health Monitoring

The system performs continuous health checks:

Continuous Monitoring

Position status verification
Price feed validation
Delta exposure calculation
System resource monitoring

Automatic Recovery

Actor restart on failure
State restoration from registry
Position reconciliation
Hedge rebalancing

Performance Metrics

Key metrics tracked in real-time:

Uptime: System availability percentage
APY: Annualized yield generation
Delta: Current directional exposure
Volatility: 24-hour realized volatility
Positions: Active position count and ranges
Volume: Daily trading volume captured

Security Measures

Isolated keypairs: Separate keys for each operation
Minimal permissions: Principle of least privilege
Audit logging: Complete operation history
Secure configuration: Encrypted sensitive data
Non-custodial: Users maintain control of their wallets

The combination of robust architecture, comprehensive monitoring, and layered security ensures GRID operates reliably 24/7, generating consistent fees for users.