# About Lambdaplex

### What is Lambdaplex?

Lambdaplex is a Hedera-native onchain cryptocurrency exchange protocol, built for high throughput, low latency, and ultra low fees. The Lambdaplex protocol uses a smart contract for trade validation, approvals, and digital asset transfers. Lambdaplex Labs provides a matching service as an order book on the Hedera network.

### Technical Overview

Lambdaplex is an order placement and authorization protocol built on the Hedera network. This is accomplished by specifying trade outcomes as signed bytes rather than giving an allowance to a specific broker. Signed bytes are represented as a single key/value pair as a Solidity mapping, and validated using the settlement contract’s Lambdaplex protocol business logic.

Traders create and sign orders offchain, encoding the tokens to be traded, trade direction, quantity, and exchange rate. These signed orders can be filled or matched by any third party. When a trade is ready to be executed, it is submitted to the Lambdaplex settlement contract, which verifies that the proposed transfers satisfy the exact conditions defined in the original order.

The smart contract acts as the enforcement layer for all trades. It decodes the signed order data, validates the proposed transaction against the order’s conditions, and approves or rejects the transfer accordingly. No additional input or signatures are required from the trader at execution time.

### Example

Suppose Alice wants to trade 100 USDC for 100 HBAR. She creates and signs an order encoding the tokens to be traded, trade direction, quantity, and exchange rate. If Bob sees this order and wishes to partially or fully fill it, he may do so himself, or match Alice with a counterparty willing to trade HBAR for USDC at or better than her 1:1 exchange rate.

When Bob submits the trade for execution, the Lambdaplex smart contract verifies that Alice receives at least 100 HBAR for her 100 USDC. If the conditions are met, the trade executes. If Bob attempts to give Alice less than 100 HBAR, the transaction is rejected and no tokens are transferred.

### Order types

Lambdaplex supports the following order types: limit, market, stop\_limit, stop\_market, take\_profit\_limit, and take\_profit\_market.

For stop and take\_profit orders, the Lambdaplex smart contract interacts with Supra’s oracle verification contracts using proof data to retrieve current price information for asset pairs. The contract evaluates whether the trigger conditions have been met and approves or denies the trade accordingly.