Welcome to the sixth edition of the Singularity Darkpool Deep Dive Series, where in each edition, we will take a deeper look into the architecture, vision, and innovations powering Singularity’s institutional-grade on-chain Darkpool orderbook.
In each edition, we unpack a specific layer of the Darkpool - from how we prevent MEV and frontrunning to the role of cutting-edge cryptography like ZKPs, FHE, and MPC.
Built to offer compliance without compromise, Singularity delivers confidential, capital-efficient execution tailored for institutions ready to trade on-chain - privately, securely, and without leaving a trace.
Last edition, we discussed MPC and why it's essential in DeFi.
This week, we're diving into how the matching engine actually works.
A book node is the engine that powers Singularity’s dark orderbook. It handles:
Unlike centralized exchanges CEXs or public DEXs, book nodes never see the raw contents of any order - they operate entirely in the dark.
When a user creates an order, they encrypt all sensitive parameters:
The encryption uses a public key that was generated collaboratively by the book nodes using MPC. This ensures that no single node can decrypt the order later.
The user submits the encrypted order to the Singularity Darkpool. From this point forward, the order is live in the system - but completely obfuscated on-chain.
No third party (validators, indexers, or attackers) can infer what’s being traded.
The book node scans the pool of encrypted orders and performs matching computations using FHE.
This allows it to:
All of this happens without decrypting the underlying values.
Once a match is found, the book node initiates a secure MPC process to decrypt only the result:
The contents of the order (asset, price, amount) remain encrypted - only whether there’s a match or not is revealed.
This step ensures distributed trust and prevents any single party from gaining insight into the trade details.
Step
Description
1. Order Encrypted | User encrypts all order details using a shared public key
2. Submitted | Encrypted order is sent to the Darkpool
3. FHE Matching | Book node runs matching logic on encrypted values
4. MPC Decryption | Nodes decrypt only the result (match/no match)
5. Trade Settlement | Orders are settled without revealing trade data
Singularity’s darkpool reimagines what an on-chain orderbook can be:
Matching is no longer a trust-based black box - it’s a cryptographically enforced, verifiable process that protects every trader’s strategy.
Thanks for reading our sixth edition of Singularity’s Darkpool Deepdive series.
In the subsequent deep dives, we’ll take you behind the curtain to explore additional core components that power Darkpool.
Check out our blog here.