How Does an Off-Chain Relayer Model Manage the Security Risk of Centralized Matching? ▴ Learn

How Does an Off-Chain Relayer Model Manage the Security Risk of Centralized Matching?

An off-chain relayer model centralizes the order matching process to increase speed and hide orders from the public mempool, reducing MEV. The security risk is managed by keeping the final settlement on-chain.

The relayer only matches orders and broadcasts the signed, matched trade to the blockchain for execution. This means the relayer cannot steal funds or execute unauthorized trades, as the funds remain in the user's control via a smart contract until the on-chain settlement is confirmed.

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