How does Lighter crypto exchange work?

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Lighter is an orderbook-based perpetual DEX built on Solana — here's how it actually works, in plain terms. The core model Most perp DEXs (like GMX) use an automated market maker: trades go against a shared liquidity pool, and you pay a spread that the pool's LPs earn. Lighter does the opposite — it runs a central limit order book (CLOB), the same structure as Binance or a traditional exchange, but fully on-chain. You place limit or market orders that match against resting orders from other traders and a market-making firm. The key innovation: zkLighter The interesting part is how matching and liquidations stay honest. Lighter uses a zero-knowledge (zk) system where the exchange's matching engine, risk checks, and liquidation logic are backed by cryptographic proofs. In plain terms: instead of trusting that the operator matched your order fairly or liquidated a position at the right price, the system produces a proof anyone can verify that the trade/liquidation was done correctly. That's the "verifiable matching and liquidations" line — you get orderbook efficiency without having to trust the venue's internal bookkeeping. The market maker An orderbook only works if someone provides liquidity on both sides. Lighter relies on a private, professional market-making firm to quote tight spreads and provide depth — so unlike a pool-based DEX where LPs earn fees from your trades, here a market maker is the primary counterparty. The upside is tighter spreads and a real orderbook feel; the trade-off is that you're depending on that firm's presence for liquidity. How you'd use it - Deposit collateral (on Solana), set your leverage, and trade BTC/ETH/SOL-style perps with market or limit orders. - Liquidations are triggered by the zk-verified risk engine when your margin falls below the maintenance level. One honest note: my description of the mechanism is background knowledge, not live verified data — Lighter's exact fee schedule, available markets, and current trading volume…