StandX Block Trade: Institutional-Grade Onchain Peer-to-Peer Perps Settlement

We are excited to introduce SIP-1: Block Trade. This is the first StandX Improvement Proposal (SIP) and represents a major step towards absolute transparency and decentralization in DeFi trading.

Large derivatives trades often move markets before they settle, sweeping orderbooks and pushing price against the trader. Block Trade enables peer-to-peer negotiation of size and price, then settles the trade transparently onchain through the StandX engine.

What Block Trade Enables

• Large negotiated derivatives trades executed through the StandX engine
• Minimal market impact for high notional positions
• Transparent onchain settlement and verification
• Flexible block order fills across multiple counterparties
• Optional counterparty verification for institutional compliance
• Large trades execute efficiently with minimal market impact.

Execution Modes

Block Trade supports two execution modes depending on how the maker wants the trade filled.

Flexible: Fills occur incrementally as counterparties join the trade. Each fill settles immediately.

Full: The entire block must be filled before expiration. If the full size is not matched, the trade does not execute.

How Block Trade Work

A trader creates a Block Trade order specifying the trade parameters. Other participants can fill part or all of the order at the agreed price. Once matching fills occur, StandX detects the onchain events and settles the resulting positions.

Multiple counterparties can participate in the same block trade.

Example Block Trade

BTC market price is $100,000.

Jack wants to go long 20 BTC at a fixed price of $98,000 without moving the market.

He creates a Block Trade order onchain with the following parameters.

• Trading pair: BTC USD
• Size: 20 BTC
• Direction: Long
• Fill price: Limit price $98,000
• Fill policy: Flexible
• Expiration: 1 day

Alice sees the order and decides to participate. She shorts 8 BTC at $98,000 and signs the transaction.

Later Bob joins and fills the remaining 12 BTC.

StandX detects the onchain match events and settles the positions.

The final result is: Jack opens a 20 BTC long position at $98,000 while Alice and Bob open the corresponding short positions.

Compliance Ready

Institutional trading desks often require visibility into who they are trading with. On their own platforms they can verify counterparties, then use the StandX matching engine to settle the trade. This allows regulated desks to participate while maintaining transparent onchain settlement.

Onchain Perps Settlement: The Promise of Pure DeFi

BlockTrade moves derivatives trading closer to the core principle of DeFi. Transparent, verifiable settlement onchain. BlockTrades are a step toward derivatives markets built on open infrastructure and trustless execution.

Stand.