CLOB matching engine on Yellow — 0 gas order matching via Nitrolite state channels, on-chain settlement.
OrderbookTrade-Yellow is a real-time prediction market with a CLOB orderbook, powered entirely by Yellow Network's Nitrolite state channels.
-
Key Innovation:
Users deposit once, trade unlimited times with zero gas fees, and settle on-chain when they're done.
| AMM Based DEX | OrderbookTrade-Yellow |
|---|---|
| Gas fee per trade | Zero gas during session |
| 12+ sec confirmation | < 1 second execution (Clearnode based) |
| Limited order types | CLOB Full orderbook (limit/market) |
| Single trade = 1 tx | Unlimited trades = 1 tx |
sequenceDiagram
autonumber
participant User as User
participant FE as Frontend
participant MM as MetaMask
participant Y as Yellow ClearNode (WS)
participant BE as Backend (WS)
User->>FE: Connect wallet
FE->>MM: Request accounts
MM-->>FE: Wallet address
User->>FE: Click "Connect Yellow"
FE->>FE: Generate session keypair
FE->>Y: Connect via WebSocket
FE->>Y: auth_request { address, session_key, allowances, expires_at, ... }
Y-->>FE: auth_challenge { challenge_message }
FE->>MM: EIP-712 sign(challenge_message)
MM-->>FE: signature
FE->>Y: auth_verify { signature, challenge, address, ... }
Y-->>FE: jwt_token { session_key, jwt_token, expires_at }
FE->>BE: Connect via WebSocket (ws://localhost:8080/ws)
FE->>BE: yellow_auth { jwt_token, session_key }
BE->>BE: ValidateToken() and create session
BE-->>FE: yellow_auth_success
FE-->>User: ✅ Authenticated — can start trading
// EIP-712 signature for session creation
const signer = createEIP712AuthMessageSigner(walletClient, authParams, { name: 'Test app' });
const verifyMsg = await createAuthVerifyMessageFromChallenge(signer, challenge);// Every matched trade updates the state channel
func (s *Server) updateYellowSession(ctx context.Context, marketID string) {
session.UpdateState(ctx, allocations, appData)
}- All trades update off-chain state via Yellow WebSocket
- Signed state includes: version, allocations, app data
- Settlement happens on-chain when user closes session
orderbooktrade-yellow/
│
├── orderbook-frontend/ # Next.js 16 + React + TypeScript
│ ├── app/ # Next.js App Router
│ ├── hooks/
│ ├── components/
│ └── lib/
│
├── orderbook-backend/ # Go CLOB Matching Engine
│ ├── cmd/server/
│ └── internal/
│ ├── engine/ # FIFO price-time priority matching
│ ├── yellow/ # Yellow SDK client & session manager
│ ├── api/ # WebSocket & REST handlers
│ ├── market/ # Prediction market management
│ └── config/ # Environment configuration
│
├── yellow-client/ # SDK Testing & Utilities
│
├── contracts/ # Solidity Smart Contracts
│ └── (Nitrolite adjudicator contracts)
│
├── assets/ # Documentation assets
│ ├── logo/
│ ├── screenshot/
│
└── docs/ # Additional documentation
├── YELLOW_SDK.md # Yellow integration guide
├── API.md # API documentation
| Layer | Technology |
|---|---|
| Frontend | Next.js 16, React, TypeScript, viem |
| Backend | Go, WebSocket, FIFO Matching Engine |
| Yellow SDK | @erc7824/nitrolite, EIP-712, State Channels |
| Blockchain | EVM-compatible, Sepolia testnet |