A high-level technical introduction to the Exponent Orderbook
The Exponent Orderbook is a limit order program where PT and YT — assets issued by the Exponent Core program — are quoted in implied APY rather than spot asset prices.
Orders are priced in implied APY. The continuous compounding formula converts implied APY to PT and YT prices — buying PT at a discount locks in a fixed return, while buying YT gives you leveraged yield exposure.The matching engine is first-in-first-out (FIFO). Orders at the same price level fill in submission order, fully onchain.PT and YT share a single pool of liquidity. All orders are quoted in YT internally — when you trade PT, the orderbook converts between PT and YT behind the scenes using strip and merge operations. See Virtual Offers for the full mechanics.A concrete example: you post a SellYT limit order at 5% APY. Your YT locks into your escrow. When a buyer matches at that price, your YT transfers to them and SY credits to your escrow — withdrawable at any time.
YT in open orders keeps earning yield. If you’re selling YT, interest accrues while your order sits in the book. If you bought YT and the order filled, interest accrues from that point. Either way, the accumulated yield is yours to claim separately.
Makers and takers pay separate fees using a time-weighted decay model — fees shrink as maturity approaches, hitting zero at expiry. Makers always pay less than takers.
Orderbook — Loads orderbook state and provides all instruction builders (post offer, market offer, remove offer, collect interest, withdraw funds) and read functions (get quote, get user balances, get open orders)
