docs: order book market types

.gitbook/SUMMARY.md

@@ -5,6 +5,11 @@
   * [Wallet](defi/wallet/README.md)
     * [Create a wallet](defi/wallet/create.md)
     * [Accounts](defi/wallet/accounts.md)
+  * [Token Standards](defi/tokens/README.md)
+    * [INJ coin](defi/tokens/inj-coin.md)
+    * [Token Factory](defi/tokens/token-factory.md)
+    * [CW20 Standard](defi/tokens/cw20-standard.md)
+  * [Order Book](defi/order-book/README.md)
   * [Trading](defi/trading/README.md)
     * [Order Types](defi/trading/order-types.md)
     * [Trading Fees and Rebates](defi/trading/fees.md)
@@ -19,10 +24,6 @@
     * [Pre-Launch Futures](defi/trading/derivatives-pre-launch-futures.md)
     * [Index Perpetual Futures](defi/trading/derivatives-index-perpetual-futures.md)
     * [iAssets](defi/trading/derivatives-iassets.md)
-  * [Token Standards](defi/tokens/README.md)
-    * [INJ coin](defi/tokens/inj-coin.md)
-    * [Token Factory](defi/tokens/token-factory.md)
-    * [CW20 Standard](defi/tokens/cw20-standard.md)
   * [Bridge](defi/bridge/README.md)
     * [From Ethereum](https://blog.injective.com/en/how-to-bridge-from-ethereum-to-injective-using-metamask/)
     * [From Solana](https://blog.injective.com/en/how-to-bridge-from-solana-to-injective-using-phantom/)

.gitbook/defi/order-book/README.md

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+# Central Limit Order Book (CLOB)
+
+The cryptocurrency industry is experiencing a renewed fascination with Central Limit Order Books (CLOBs). Across crypto social media, research reports, and development communities, on-chain orderbook infrastructure has emerged as one of the most discussed topics of 2024 and 2025. New projects are launching with significant fanfare, promising to bring "institutional-grade" trading experiences to decentralized finance. Venture capital is flowing toward CLOB-focused startups, and the narrative has crystallized around the idea that on-chain orderbooks represent the next evolutionary leap for decentralized exchanges: a sophisticated alternative to the Automated Market Maker (AMM) model that has dominated DeFi since Uniswap's rise.
+
+Yet this narrative treats on-chain CLOBs as a recent innovation, with most discourse focusing on newly-launched projects. The industry speaks of "pioneering" new approaches to orderbook infrastructure, connoting that the concept of on-chain CLOB infrastructure is being invented for the first time. This framing, while understandable given the current hype cycle, obscures a crucial historical reality.
+
+Injective has been operating a decentralized, fully on-chain CLOB infrastructure since its inception. Founded in 2018 and incubated by Binance Labs that same year, Injective launched with comprehensive orderbook functionality supporting spot trading, perpetual futures, expiry futures, and binary options markets. For seven years, Injective has been quietly solving the technical challenges that the broader crypto community has only recently begun to grapple with.
+Most CLOB-based projects emerging on the scene face fundamental constraints, as they are built within virtual machine (VM) environments. These solutions, whether on Ethereum, Solana, Aptos, Sui, or other execution environments, suffer from gas economics, computational overhead, and architectural boundaries. Additionally, many implementations rely on Layer-2 scaling, off-chain components, or hybrid architectures that compromise the decentralization that motivated moving away from centralized exchanges. 
+
+To be fair, Injective is not the only project to recognize these architectural limitations. Hyperliquid, which launched in 2022 and has captured massive attention in the current CLOB narrative, has also built a custom L1 to avoid VM constraints. However, it employs a dual architecture, splitting state execution between HyperCore and HyperEVM, introducing development complexity and performance implications for applications hoping to leverage the CLOB.
+
+Injective's approach is fundamentally different: implementing orderbook functionality as a native blockchain module rather than an application layer. This enables permissionless plug-and-play access for any application built on Injective, eliminating cross-layer complexity while executing sophisticated financial operations without gas optimization constraints or architectural compromises.
+
+This paper provides a comprehensive examination of Injective's on-chain CLOB infrastructure, explaining both how it works and why its architectural approach offers inherent advantages over alternative implementations. We will explore the Exchange module's (Injective’s CLOB infrastructure) design, detail its key innovations such as the Frequent Batch Auction mechanism for front-running prevention, and analyze how chain-level implementation enables capabilities that remain difficult or impossible to achieve within virtual machine environments. By understanding Injective's technical architecture, we can better appreciate both its significance as the original on-chain CLOB implementation and its strategic positioning as the crypto industry rediscovers the power of decentralized orderbook infrastructure.

.gitbook/defi/order-book/market-types.md

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+# Market Types & Unified Infrastructure in Injective CLOB
+
+One of the most compelling demonstrations of the Exchange module's architectural advantages lies in its ability to support multiple sophisticated financial instruments through a single, unified infrastructure. Rather than requiring separate implementations for each market type, Injective's native module approach enables spot trading, perpetual futures, expiry futures, and binary options to operate seamlessly on the same underlying orderbook and matching engine.
+
+## Spot Markets
+
+Spot markets on Injective function as the foundation for all other market types, enabling immediate settlement trading of digital assets. The Exchange module maintains separate orderbooks for each spot trading pair, with orders matched through the Frequent Batch Auction mechanism described previously.
+
+What distinguishes Injective's spot market implementation is its native integration with the broader protocol infrastructure. Trades settle atomically within the same block, eliminating counterparty risk and settlement delays. The module handles all balance updates, fee calculations, and state transitions without requiring external smart contract calls or cross-system coordination.
+
+<!-- The spot market infrastructure supports standard order types including market orders, limit orders, and stop orders. -->
+Market makers can provide liquidity through limit orders that rest in the orderbook, while takers can execute against this liquidity using market orders. The system automatically handles partial fills, order modifications, and cancellations through native module functions.
+
+## Perpetual Futures
+
+Perpetual futures represent one of the most complex financial instruments in cryptocurrency trading, requiring sophisticated margin management, funding rate calculations, and risk controls. The Exchange module implements these mechanics natively, avoiding the computational and economic constraints that limit smart contract-based implementations.
+
+The perpetual futures system operates through several interconnected mechanisms. Position tracking maintains real-time records of each trader's long or short exposure, margin requirements, and unrealized profit and loss. The system calculates funding rates based on the premium or discount between the perpetual price and the underlying spot price, with payments exchanged between long and short position holders every funding period.
+
+Margin management operates in real-time, with the system continuously monitoring position health through integration with the Oracle module for mark price feeds. When positions approach liquidation thresholds, the system can automatically trigger liquidation processes that close positions, update insurance fund balances, and handle any resulting socialized losses across remaining position holders.
+
+The native implementation enables these complex operations to occur within single blockchain transactions. For example, a large trade that affects funding rates, triggers liquidations, and requires insurance fund payouts can be processed atomically, ensuring system consistency and eliminating the race conditions that plague multi-contract implementations.
+
+## Expiry Futures
+
+Expiry futures markets introduce additional complexity through their settlement mechanisms and time-sensitive operations. These contracts trade until a specified expiration date, at which point they settle based on a predetermined index price or settlement methodology.
+
+The Exchange module handles expiry future settlements through automated processes triggered by blockchain state transitions. When contracts reach their expiration time, the system automatically calculates settlement prices using Oracle module price feeds, settles all open positions, and distributes funds according to each position's profit or loss.
+
+This automated settlement process eliminates the manual intervention or external oracle calls that other implementations might require. The settlement occurs deterministically across all network validators, ensuring that all participants receive consistent treatment and eliminating potential disputes about settlement prices or timing.
+
+## Binary Options
+
+Binary options represent perhaps the most novel financial instrument supported natively by the Exchange module. These contracts enable traders to speculate on specific outcomes or price levels, with positions settling to either full value or zero based on whether the specified condition is met at expiration.
+
+The binary options implementation leverages the same orderbook infrastructure as other market types while implementing specialized settlement logic. Market makers can provide liquidity by offering odds on various outcomes, while traders can take positions on either side of the binary outcome.
+
+Settlement occurs automatically through integration with the Oracle module, which provides the necessary data feeds to determine whether the specified conditions have been met. The deterministic nature of blockchain execution ensures that all participants receive consistent settlement results without requiring trusted intermediaries or manual intervention.
+
+## Unified Infrastructure Advantages
+
+The ability to support multiple market types through a single module provides several significant advantages over systems that implement each market type separately. First, liquidity can flow more efficiently between related markets. For example, spot markets can provide hedging opportunities for futures positions, while arbitrage between different contract types helps maintain efficient pricing relationships.
+
+Second, risk management becomes more sophisticated when implemented at the module level. The system can calculate portfolio-level risk across multiple market types, enable cross-margining between positions, and implement global risk controls that would be difficult to coordinate across separate implementations.
+
+Third, the unified infrastructure dramatically simplifies the development experience for applications built on Injective. Rather than integrating with multiple separate systems, applications can access all market types through consistent interfaces provided by the Exchange module. This enables sophisticated trading applications, portfolio management tools, and financial products to be built more easily and with fewer integration points.
+
+## Composability & Integration
+
+The native module architecture enables sophisticated composability between different market types and other protocol components. Applications can create complex trading strategies that span multiple instruments, implement automated portfolio rebalancing across market types, or build structured products that combine features from different market categories.
+
+For example, an application could implement a strategy that maintains delta-neutral exposure by automatically hedging spot positions with perpetual futures, adjusting position sizes based on realized volatility, and using binary options to hedge tail risks. The atomic execution guarantees provided by the native module ensure that these complex operations either complete entirely or fail entirely, eliminating partial execution risks.
+
+This composability extends beyond trading to encompass the broader Injective ecosystem. Applications can combine Exchange module functionality with other native modules like the Auction module for decentralized fee distribution and price discovery mechanisms, the TokenFactory module for native token creation and management without smart contract deployment overhead, the Wasmx module for automated smart contract execution, or any other of Injective's 12+ custom modules that extend the protocol's capabilities.