chore(lazer) How Lazer works

Author: aditya520

pages/lazer/how-lazer-works.mdx

@@ -1,5 +1,55 @@
 # How Pyth Lazer works
 
-Pyth Lazer is a permissioned service that provides ultra-low-latency price and market data to highly latency-sensitive users.
+Pyth Lazer is a permissioned service that provides ultra-low-latency market data to consumers.
+It aggregates data from multiple publishers and distributes it to consumers through a multi-tier architecture.
 
-We are working on writing a detailed technical overview how Lazer works. Details will be added here as they are completed.
+## System Components
+
+The architecture consists of four main services that work together to provide ultra-low-latency data to consumers.
+
+### INSERT DIAGRAM HERE
+
+### Publishers
+
+Publishers are the entities that provide market data to Lazer. They submit price updates via authenticated WebSocket connections.
+Each publisher is configured with specific permissions defining which feeds they can update.
+
+### Relayers
+
+The Relayer is the ingestion layer that receives and validates all incoming updates from publishers.
+
+**Key responsibilities:**
+
+- **Authentication**: Validates publisher access tokens and optional Ed25519 signatures.
+- **Rate limiting**: Enforces configurable limits of price updates per publisher.
+- **Message forwarding**: Publishes validated updates to NATS or Kafka.
+- **History Service**: Maintains a connection to the History Service to cache historical data for circuit breaker validation.
+
+The Relayer also maintains a connection to the History Service to cache historical data for circuit breaker validation.
+
+### Aggregator Component
+
+The Aggregator is a library component embedded within both the Router and History Service.
+It consumes publisher updates from the message bus and computes aggregated price feeds.
+
+**Aggregation logic:**
+The Aggregator computes median prices, confidence intervals (using interquartile range), and best bid/ask prices from multiple publisher inputs.
+It filters out stale data and ensures minimum publisher requirements are met before publishing aggregated updates.
+
+### Router Service
+
+The Router is the real-time distribution layer that serves price feeds to consumers.
+
+**Key features:**
+
+- **WebSocket streaming**: Provides `/v1/stream` endpoint for real-time price updates
+- **HTTP REST API**: Offers `/v1/latest_price` for on-demand price queries
+- **Channel types**: Supports real-time and fixed-rate channels (1ms, 50ms, 200ms)
+- **Multi-chain support**: Generates on-chain payloads for Solana, EVM, and other chains
+
+### Message Transport Layer
+
+The system supports dual message queue backends for flexibility. This allows the system to be deployed in a multi-datacenter environment.
+
+- **NATS Jetstream**: Provides pub/sub messaging with stream persistence.
+- **Apache Kafka**: Can be used instead of NATS for message transport.