# Smart Contracts

ODEX is built on Solidity smart contracts for an Ethereum virtual machine environment.

The proof of concept code is open-sourced (awaiting audit) at: <https://github.com/odexfi/contracts>

#### PERMISSIONLESS & PSEUDONYMOUS

The factory contract enables anyone to set up a market for any two ERC20 tokens on any EVM blockchain. By enabling 3rd parties to create trading exchanges we offer new ways for projects to bootstrap liquidity for their tokens in efficient ways.

The *OdexMarket.sol* smart contract manages a performance focused limit order book - a place where all bids to buy and asks to sell orders are listed. When you place an order to buy or sell a token at a specific price, this order gets registered in the order book. If a counterparty wants to trade at the same price immediately or at a later date, the order gets filled. If the order remains unfilled and price moves away the user can cancel or reprice their order to remain competitive in a volatile market.

The contract also includes functions to assess liquidity, TVL and orderbook depth. With these functions, users can check total market liquidity or examine the highest priced bid or the lowest priced ask. The transparent nature of on-chain data and transactions offers improvements over centralized competitors.

Market makers and systems traders can bypass the UI and trade directly with the smart contracts, monitoring events for bids, asks and trades while executing programmatic transactions.

The ODEX smart contracts are permissionless, meaning that all users are treated equally and no centralized entity having admin privileges. They are also immutable and resistant to censorship with open-source code, verified on Etherscan.

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