Self-Custody in XOX

XOX is a high-performance decentralized exchange (DEX) platform that combines spot trading, perpetuals, and advanced liquidity mechanisms with StarkEx’s Layer 2 ZK-Rollup engine. This integration delivers institutional-grade throughput, sub-second latency, and significantly lower fees while preserving full user self-custody and Ethereum-level security.

StarkEx-Powered Scalability with Proven Security

  • Core Technology: XOX operates on StarkEx ZK-Rollup, which executes and aggregates thousands of transactions off-chain, generates cryptographic STARK proofs via the Shared Prover (SHARP), and submits only the proof and state delta to Ethereum mainnet.

  • Real-World Validation: Since its launch in 2020, StarkEx has securely processed more than $1.3 trillion in trading volume for over 200,000 users without a single security incident, making it one of the most battle-tested Layer 2 solutions available.

Transaction & State Update Flow

  1. Order Submission — Users sign trades or liquidity operations with their private keys and submit them to the XOX application layer.

  2. Off-Chain Processing — The XOX sequencer batches transactions and forwards them to StarkEx.

  3. Proof Generation — StarkWare’s SHARP prover network generates a validity proof for the entire batch.

  4. On-Chain Verification — The STARK verifier contract on Ethereum validates the proof and accepts the new state root.

  5. Final Settlement — The updated state is recorded on Ethereum mainnet, guaranteeing immutability and availability.

True Self-Custody – Users Always in Control

  • Non-Custodial Architecture → Assets are deposited directly into Ethereum mainnet custody contracts controlled by StarkEx. XOX never takes possession of user funds.

  • Private Key Sovereignty → Every action on Layer 2 (trading, liquidity addition/removal, position closing, withdrawal requests) requires an explicit user signature. No operator can move funds without user consent.

  • Emergency Independence → Even if the XOX operator or sequencer goes offline or acts maliciously, users retain the ability to:

    • Force-close positions

    • Force-withdraw liquidity

    • Exit directly to Ethereum L1 using on-chain “forced operations” that bypass the operator entirely.

Censorship Resistance & Forced Actions

XOX inherits StarkEx’s full suite of forced operations:

  • Forced Withdrawal – Users can withdraw assets directly from the L1 custody contract at any time.

  • Forced Trade / Forced Liquidity Withdrawal – Users can unilaterally execute exit transactions if the operator refuses or delays processing. These mechanisms eliminate single points of failure and ensure users can always access their funds, regardless of platform availability.

Transparency and Verifiability

All Layer 2 state transitions are cryptographically linked to Ethereum Layer 1. Anyone can verify the correctness of the rollup state using publicly available proofs and the on-chain Merkle roots. This guarantees that fraud is mathematically impossible and that user balances are always accurate and auditable.

By building on StarkEx—the same infrastructure trusted by leading perpetual platforms—XOX delivers a genuinely non-custodial experience with performance that rivals centralized exchanges, giving traders, liquidity providers, and investors complete confidence and control over their assets.

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