Rubicon is an order book protocol built on Ethereum L2 networks. The order book contract implements fully on-chain order books and a matching engine for peer-to-peer trading of ERC-20 tokens. The contract uses an escrow model for liquidity; when a limit order is placed on the book, those tokens are sent to the contract. If/when an order is filled, the contract matches the traders directly and the tokens are sent to each party. A router contract allows for token swaps across multiple order books.
Rubicon v1 liquidity pools enable passive LPs to lend tokens to active market makers in exchange for a share of market making yield. In Rubicon V2, these liquidity pools will be similar to traditional lending protocols and our current functionality will be deprecated, enabling seamless spot margin lending/borrowing on the protocol via over-collateralized lending. The liquidity incentives outlined in this proposal would only go to the V2 liquidity pools.
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