How Block Trade Works
How Block Trade Works
Block Trade bridges decentralized user control with centralized liquidity. It enables large token swaps with minimal slippage by connecting your connected, self-custodial wallet directly to off-chain liquidity providers — all without giving up custody of your funds.
Core Mechanism
Block Trade uses Loopring’s smart contract infrastructure and relayer system to coordinate large trades between users (like you) and market makers. Here's how it works:
Quote & Lock
You query real-time pricing from Loopring’s relayer.
If you accept the price, the relayer locks your tokens and submits a swap order (including price and amount) with your signature.
Order Visibility
The order is posted off-chain.
A market maker sees your offer and decides whether to accept it.
CEX Execution by Market Maker
The market maker submits a taker order to the centralized exchange (CEX) at or better than your quoted price.
The agreed-upon amount is settled based on available liquidity.
Final Settlement on Loopring
The market maker signs the settlement message.
Loopring relayer settles the trade between both parties.
Any remaining tokens (if not fully matched) are unlocked and returned to you.
💡 Only the specific market maker who matches your order can settle it — ensuring exclusivity and preventing frontrunning.
What Makes It Different?
Custody
User-owned
CEX-owned
User-owned
Slippage on Large Trades
High
Low
Low
Requires Order Splitting
Often
No
No
Direct Access to CEX Liquidity
No
Yes (but centralized)
Yes (with DeFi custody)
Security Model
Block Trade is built on top of Loopring’s protocol-level contracts. Key protections include:
No custody risk – trades are signed and approved by the user wallet
No hidden approvals – token allowances are scoped to the transaction
⚠️ Once you confirm an order, your funds are committed until the quote is filled or expires.
đź”— Quick Access
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