3.Protocol Mechanism

​3.1 Core Protocol as the Execution Layer for Stock Assets​

The Deshare protocol functions as the foundational execution layer for on-chain stock assets. It is engineered to facilitate secure, transparent, and efficient trading by leveraging a request-for-quote (RFQ) model. This design ensures that price discovery is competitive and execution is trustworthy

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​3.2 The Request-for-Quote (RFQ) Model​

At the heart of the trading mechanism is the RFQ model, which promotes fair pricing through competition among market makers.

• ​Price Competition:​​ When a user initiates a trade intention, the system broadcasts an RFQ to a network of pre-approved market makers. These market makers then compete to provide the best possible bid or ask price for the requested asset and quantity

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• ​Execution Certainty:​​ This model helps in achieving superior execution prices compared to a simple order book model, especially for larger block trades, as it taps into multiple liquidity sources simultaneously.

​3.3 Cryptographic Signatures and On-Chain Verification​

To ensure the integrity and non-repudiation of quotes, Deshare employs robust cryptographic techniques.

• ​Cryptographically Signed Quotes:​​ Every quote submitted by a market maker is cryptographically signed using their private key. This signature acts as a digital proof of the origin and the specific terms of the quote, making it impossible to alter the quote after submission without detection

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• ​On-Chain Verification:​​ Before a trade is settled, the smart contract verifies the signature attached to the accepted quote against the market maker's known public key. This on-chain validation process is crucial for preventing manipulation, rejecting invalid or delayed quotes, and ensuring that the executed trade strictly adheres to the quoted terms

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​3.4 Liquidity Providers and Off-Chain Aggregation​

Liquidity providers (market makers) play a critical role in the Deshare ecosystem by ensuring assets can be delivered and executed efficiently.

• ​Role of Market Makers:​​ They are responsible for the final delivery execution of the assets. They commit to honoring the quotes they provide, ensuring that users' trades are settled correctly

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• ​Aggregation of Off-Chain Liquidity:​​ A key function of these market makers is to aggregate liquidity from traditional brokerages and other off-chain sources. This aggregation allows the protocol to offer deep liquidity and tight spreads that are competitive with, or even superior to, traditional brokerage platforms. Users can trade directly against this pooled liquidity, enjoying seamless access to global markets

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3.5 Integration with Smart Contracts for Settlement​

The entire lifecycle of a trade—from quote acceptance to final settlement—is automated and enforced by smart contracts.

• ​Automated Settlement:​​ Once a user accepts a valid and verified quote, the smart contract automatically executes the trade. It handles the exchange of the user's stablecoins (e.g., USDT) for the tokenized stock, or vice versa, according to the agreed-upon terms

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• ​Non-Custodial Asset Control:​​ This process is non-custodial. The smart contract securely holds the involved assets in escrow until the transaction conditions are met, at which point ownership is transferred on-chain. Users retain control of their assets throughout the process, which never reside in a central platform wallet

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This architecture, combining a competitive RFQ mechanism, cryptographic security, and automated smart contract settlement, forms a robust execution layer that is transparent, efficient, and resistant to manipulation.