The 3-Layer Stack Architecture

Layer 1: Identity Layer (On-chain Access Control)

At the foundation layer, the Smart Wallet Factory and Implementation on Base L2 are responsible for managing user identity. We utilize the CREATE2 opcode to generate Counterfactual Addresses. This allows users to have a wallet address for deposits immediately without needing to deploy the contract, saving initial Gas costs. This Smart Wallet acts as a "Wrapper," executing multi-method authentication logic (Passkey/EOA), Session Management, and serving as the sole legal representative of the user when interacting with core contracts.

Layer 2: Execution Layer (The Sequencer & Matching Engine)

This is the central processing "brain" where high-frequency trading activities occur.

• In-Memory Matching Engine: A matching engine operating entirely on cache memory (RAM) with optimized data structures, enabling Matching Latency under 10ms and the ability to process tens of thousands of transactions per second.

• The Sequencer: Acts as the coordinator. The Sequencer receives transaction requests (UserOps), performs Ordering to prevent Front-running, and then executes them via the Matching Engine. Transaction results (PnL, balance changes) are aggregated and compressed into Batches to be sent down to Layer 3 for periodic verification.

Layer 3: Settlement Layer (On-chain Verification)

This is where "Truth" is established. The Core Contracts set on Base L2 includes:

• Verifier Contract: The single Entry Point for validation. This contract receives Batches from the Sequencer, checking cryptographic signatures and the validity of the State Root before accepting new state updates.

• Pool & Vault Contract: A decentralized treasury responsible for the Custody of User and Liquidity Provider (LP) assets. Assets in this Pool are locked via Smart Contract mechanisms; no one (including the Bullbit operations team) can move funds without valid cryptographic proof confirmed by the Verifier.