IMPLEMENTATION_CHECKLIST.md

OpenLiquid: Implementation Progress Checklist

Quick Reference: Track implementation progress across all milestones
Detailed Tests: See TEST_SPECIFICATION.md for full acceptance criteria
Last Updated: October 2025

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Overall Progress

Phase 1: Consensus Foundation      [░░░░░░░░░░] 0%
Phase 2: OpenCore Engine           [░░░░░░░░░░] 0%
Phase 3: OpenEVM Integration       [░░░░░░░░░░] 0%
Phase 4: Application Layer         [░░░░░░░░░░] 0%
Phase 5: Security & Launch         [░░░░░░░░░░] 0%

Overall:                           [░░░░░░░░░░] 0%

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Phase 1: Consensus Foundation (3-6 months)

1.1 Cryptography Library [░░░░░░░░░░] 0/5

• BLS threshold signature implementation
  • tsign_i(m) - Partial signature generation
  • tcombine(m, {ρ_i}) - Signature aggregation
  • tverify(m, σ) - O(1) verification
  • Security: Requires k-f honest signatures to forge
  • Tests: 10 P0 tests in TEST_SPEC section 1.1.1
• ECDSA signatures (secp256k1)
  • Transaction signing
  • User operation validation
• Hash function (SHA-256 or BLAKE3)
  • Collision resistance verified
  • Performance: <1ms for 1MB blocks
  • Tests: 3 P0 tests in TEST_SPEC section 1.1.2
• Key generation & management
  • Secure generation ceremony
  • HSM support
• Cryptography test suite passing
  • Required: ALL P0 tests (13 tests)

Acceptance: BLS signatures verified secure, all crypto tests passing

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1.2 Consensus Engine (HotStuff-BFT) [░░░░░░░░░░] 0/8

• Core data structures
  • Block (parent hash, height, justify QC)
  • Vote (block hash, view number, signature)
  • Quorum Certificate (QC)
  • Validator state (view number, locked_qc, prepare_qc)
• Safety predicate (safeNode)
  • Extends locked branch → accept
  • Higher QC view → accept (optimistic responsiveness)
  • Otherwise → reject
  • Tests: 15 P0 tests in TEST_SPEC section 1.2.1
• Three-chain commit rule
  • Prepare phase (block h)
  • Pre-commit phase (block h-1)
  • Commit phase (block h-2)
  • Consecutive view requirement
  • Tests: 8 P0 tests in TEST_SPEC section 1.2.2
• Pacemaker implementation
  • Deterministic leader election: leader(h) = validators[h mod n]
  • Timeout mechanism with exponential backoff
  • View change protocol
  • New-view message collection (n-f required)
  • Tests: 6 P1 tests in TEST_SPEC section 1.3
• QC formation & verification
  • Collect n-f votes
  • Combine into threshold signature
  • Constant-size verification
• Block proposal & voting
  • Leader proposes with justify QC
  • Validators vote if safeNode passes
  • Vote aggregation
• Byzantine fault tolerance
  • Safety maintained with f Byzantine validators
  • Liveness maintained with f offline validators
  • Tests: 20+ P0 tests in TEST_SPEC section 1.2.3
• Consensus test suite passing
  • Required: ALL P0 safety tests (58 tests)
  • Required: ALL P0 Byzantine tests (20 tests)

Acceptance: 78+ P0 tests passing, formal verification complete

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1.3 P2P Networking Layer [░░░░░░░░░░] 0/5

• libp2p integration
  • Peer discovery
  • Authenticated connections
• Gossip protocol
  • Block propagation
  • Transaction broadcasting
  • Message propagation <500ms
  • Tests: 4 P1 tests in TEST_SPEC section 1.4.1
• Direct validator channels
  • Vote transmission
  • QC exchange
• Network partition handling
  • Partition detection
  • Recovery protocol
  • State reconciliation
  • Tests: 3 P1 tests in TEST_SPEC section 1.4.1
• Networking test suite passing
  • Required: 7 P1 tests

Acceptance: Messages propagate in <500ms, partitions recover correctly

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1.4 State & Storage [░░░░░░░░░░] 0/4

• RocksDB/LevelDB integration
  • Key-value store setup
  • Atomic commits
• State machine interface
  • Block application
  • State transitions
  • Rollback support
• Block storage
  • Persistent blockchain
  • Transaction receipts
• State pruning (non-validators)
  • Configurable retention (e.g., 1 week)
  • Snapshot support

Acceptance: State persists correctly, pruning works

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Phase 1 Success Criteria ✓/✗

• ALL consensus safety tests passing (58 P0 tests)
• ALL Byzantine fault injection tests passing (20 P0 tests)
• BLS threshold signatures verified (13 P0 tests)
• Network partition recovery works (7 P1 tests)
• Formal verification (TLA+) completed
• 4-node testnet operational
• Block production rate: ~12 blocks/sec
• Finality time: 1-3 blocks (83-250ms)

Deliverable: Functional consensus network with validator set

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Phase 2: OpenCore Engine (4-6 months)

2.1 On-Chain Order Book [░░░░░░░░░░] 0/6

• Red-Black Tree implementation
  • Bid tree (descending order)
  • Ask tree (ascending order)
  • O(log P) insert/remove
  • O(1) best bid/ask
• Price level queues
  • FIFO order queue per price
  • Price-time priority enforcement
  • Tests: 6 P0 tests in TEST_SPEC section 2.1.1
• Matching engine
  • Market order execution
  • Limit order crossing
  • Partial fills
  • Full fills
  • Tests: 8 P0 tests in TEST_SPEC section 2.1.1
• Order cancellation
  • By order ID
  • Batch cancellation
• Order book state queries
  • Best bid/ask
  • Depth at price level
  • Total volume
• Performance benchmarks
  • Throughput >100k orders/sec
  • Latency <1ms per order
  • Tests: 4 P1 tests in TEST_SPEC section 2.1.2

Acceptance: 18+ tests passing, >100k orders/sec, <1ms latency

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2.2 Clearinghouse & Margining [░░░░░░░░░░] 0/5

• User account state
  • Spot balances (per coin)
  • Margin collateral
  • Open positions list
• Margin calculation
  • Initial margin
  • Maintenance margin
  • Cross-margin vs isolated
  • Tests: 5 P0 tests in TEST_SPEC section 2.2.1
• Position valuation
  • Mark-to-market using oracle price
  • PnL calculation
  • Account value
• Liquidation detection
  • Account value < maintenance margin
  • Liquidation flagging
  • Tests: 4 P0 tests in TEST_SPEC section 2.2.1
• Leverage management
  • Per-position leverage
  • Leverage updates
  • Position size limits

Acceptance: 9+ P0 tests passing, margin math verified correct

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2.3 Liquidation Engine [░░░░░░░░░░] 0/4

• Liquidation monitoring
  • Per-block account checks
  • Underwater position detection
• Liquidation execution
  • Market order placement
  • Position closing
  • Tests: 3 P0 tests in TEST_SPEC section 2.2.2
• Insurance fund
  • Fund balance tracking
  • Deficit handling
• Liquidation fee distribution
  • Liquidator rewards
  • Insurance fund contributions

Acceptance: 3+ P0 tests passing, liquidations execute correctly

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2.4 Oracle Module [░░░░░░░░░░] 0/5

• Validator price sourcing
  • 3+ external exchanges per validator
  • Price submission per block
• Price aggregation
  • Trimmed mean (remove top/bottom 20%)
  • Outlier removal
  • Tests: 4 P0 tests in TEST_SPEC section 2.3.1
• Deviation monitoring
  • Per-validator deviation tracking
  • >5% deviation flagging
• Oracle manipulation resistance
  • Byzantine validators can't manipulate
  • Tests: 3 P0 tests in TEST_SPEC section 2.3.1
• Price feed API
  • Mark price query
  • Historical prices

Acceptance: 7+ P0 tests passing, manipulation resistant

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2.5 Core Transaction Types [░░░░░░░░░░] 0/6

• LimitOrderCreate
  • Serialization format
  • Validation logic
• LimitOrderCancel
  • By order ID
  • User authentication
• SpotDeposit
  • Asset transfer to Core
• SpotWithdraw
  • Asset transfer from Core
  • Balance checks
• UpdateLeverage
  • Per-position leverage changes
• MarketOrder
  • Immediate execution
  • Liquidation engine use

Acceptance: All transaction types implemented and tested

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Phase 2 Success Criteria ✓/✗

• All order matching tests passing (18 P0 tests)
• All margin/liquidation tests passing (12 P0 tests)
• All oracle tests passing (7 P0 tests)
• Throughput >100k orders/sec
• Per-order latency <1ms
• Multi-user trading functional
• Liquidations execute correctly
• Oracle prices accurate and manipulation-resistant

Deliverable: Performant DEX on custom L1

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Phase 3: OpenEVM Integration (3-4 months)

3.1 Dual EVM Block Architecture [░░░░░░░░░░] 0/5

• Small EVM blocks
  • 1 second cadence
  • 2M gas limit
  • Tests: 3 P0 tests in TEST_SPEC section 3.1.1
• Big EVM blocks
  • 60 second cadence
  • 30M gas limit
  • Preceded by small block (same timestamp)
  • Tests: 4 P0 tests in TEST_SPEC section 3.1.1
• Gas limit enforcement
  • Small block rejects >2M gas
  • Big block rejects >30M gas
  • Tests: 3 P0 tests in TEST_SPEC section 3.1.2
• Block number & timestamp
  • Monotonically increasing block numbers
  • Shared timestamp for small+big blocks
• Transaction routing
  • Small tx → small block
  • Large tx → big block

Acceptance: 10+ P0 tests passing, dual blocks work correctly

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3.2 Embedded EVM (revm) [░░░░░░░░░░] 0/4

• revm integration
  • EVM initialization
  • State access
• Smart contract execution
  • Contract deployment
  • Contract calls
  • Gas accounting
• EVM state management
  • Account balances
  • Contract storage
  • Code storage
• Transaction execution
  • Transaction validation
  • Execution
  • Receipts

Acceptance: EVM executes standard contracts correctly

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3.3 Precompiled Contracts [░░░░░░░░░░] 0/6

• Precompile infrastructure
  • Reserved addresses (0x0...0800)
  • Call interception
  • Native code execution
• Real-time Core state reads
  • Reads CURRENT state (not block-pinned)
  • Core block number advances during EVM execution
  • Tests: 5 P0 tests in TEST_SPEC section 3.2.1
• Balance precompile
  • getSpotBalance(user, coin)
  • Returns current Core balance
• Position precompile
  • readUserPerpPosition(user, coin)
  • Returns current position
• Price precompile
  • getMarkPrice(coin)
  • Returns oracle price
• Precompile performance
  • Latency <100μs per call
  • Tests: 2 P1 tests in TEST_SPEC section 3.2.2

Acceptance: 7+ P0/P1 tests passing, <100μs latency

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3.4 CoreWriter Contract [░░░░░░░░░░] 0/5

• CoreWriter deployment
  • Fixed address (0x3...333)
  • Solidity interface
• Action functions
  • placeOrder(asset, price, size, side)
  • cancelOrder(order_id)
  • updateLeverage(asset, leverage)
  • withdraw(coin, amount)
• RawAction event emission
  • Event format
  • Node event listener
• Weak atomicity guarantees
  • EVM call succeeds even if Core action fails
  • No automatic revert
  • Tests: 8 P0 tests in TEST_SPEC section 3.3.1
• Action status queries
  • Failed action tracking
  • Status precompile

Acceptance: 8+ P0 tests passing, atomicity documented

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3.5 Asset Transfer System [░░░░░░░░░░] 0/6

• ERC-20 system addresses
  • Per-token system address
  • Transfer event monitoring
• Native token (OPEN) handling
  • System address contract (0x222...222)
  • receive() payable function
  • Receive event emission
  • Tests: 4 P0 tests in TEST_SPEC section 3.4.1
• Transfer finalization
  • Guaranteed by next Core block
  • EVM → Core balance updates
• Transfer queue processing
  • Deterministic ordering
  • Transfers execute BEFORE CoreWriter actions
  • Tests: 6 P0 tests in TEST_SPEC section 3.3.2
• "Disappearing assets" window
  • Assets in-flight not visible via precompiles
  • Design pattern for tracking
  • Tests: 3 P0 tests in TEST_SPEC section 3.4.2
• Core → EVM withdrawals
  • Withdrawal requests
  • Asset minting/transfer in EVM

Acceptance: 13+ P0 tests passing, no lost transfers

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3.6 Security Mechanisms [░░░░░░░░░░] 0/4

• Delayed order actions
  • Order actions delayed by ~100ms
  • Prevents latency arbitrage
  • Tests: 6 P0 tests in TEST_SPEC section 3.5.1
• Action conflict resolution
  • First action wins on conflicts
  • Second action fails gracefully
  • Tests: 3 P0 tests in TEST_SPEC section 3.5.1
• Attack vector prevention
  • Reentrancy attacks prevented
  • Front-running mitigated
  • Double-spend impossible
  • Tests: 15+ P0 tests in TEST_SPEC section 3.5.2
• Rate limiting
  • Per-user action limits
  • DOS prevention

Acceptance: 24+ P0 tests passing, all attacks mitigated

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Phase 3 Success Criteria ✓/✗

• All EVM block architecture tests passing (10 P0 tests)
• All precompile tests passing (7 P0/P1 tests)
• All CoreWriter atomicity tests passing (8 P0 tests)
• All asset transfer tests passing (13 P0 tests)
• All security/attack tests passing (24 P0 tests)
• Smart contracts can interact with Core
• Transfers never lost or duplicated
• Precompile latency <100μs
• All known attack vectors tested and prevented

Deliverable: Unified EVM/Core execution environment

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Phase 4: Application Layer (2-3 months)

4.1 Market Making Vault [░░░░░░░░░░] 0/8

• Solidity smart contract
  • Vault deployment on OpenEVM
  • User deposit/withdrawal
• Avellaneda-Stoikov implementation
  • Reservation price: r = s - q·γ·σ²·(T-t)
  • Optimal spread calculation
  • Tests: 4 P0 tests in TEST_SPEC section 4.1.1
• Inventory tracking
  • Per-asset position via precompile
  • Real-time updates
• Quote generation
  • Bid/ask calculation
  • CoreWriter order placement
  • Old order cancellation
• Multi-asset tiering
  • Tier 1 (BTC, ETH): 0.1% allocation
  • Tier 2 (major alts): 0.05% allocation
  • Tiers 3-5: Smaller allocations
  • ~160 total coins
  • Tests: 5 P1 tests in TEST_SPEC section 4.1.2
• Exposure management
  • Position limits per tier
  • Gradual quote size reduction
  • Circuit breakers
• Directional prediction
  • ~50% accuracy target (coin-toss level)
  • No market manipulation
• Performance metrics
  • Sharpe ratio >1.0
  • Max drawdown <10%
  • Tests: 4 P2 tests in TEST_SPEC section 4.1.3

Acceptance: 13+ tests passing, vault profitable in testing

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4.2 JSON-RPC Server [░░░░░░░░░░] 0/5

• Ethereum-compatible RPC
  • eth_call
  • eth_sendTransaction
  • eth_getBalance
  • eth_blockNumber
• OpenCore RPC extensions
  • Get order book depth
  • Get user positions
  • Get oracle prices
• WebSocket support
  • Real-time block updates
  • Transaction notifications
• MetaMask compatibility
  • Wallet connection
  • Transaction signing
• Rate limiting & auth
  • Per-IP rate limits
  • API key authentication

Acceptance: MetaMask connects, transactions submit

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4.3 Block Explorer [░░░░░░░░░░] 0/5

• Frontend (React/Next.js)
  • Block list view
  • Block detail view
  • Transaction detail view
• Core DEX data
  • Order book visualization
  • Trade history
  • Position tracking
• EVM data
  • Contract interactions
  • Event logs
• Search functionality
  • By block number
  • By transaction hash
  • By address
• Real-time updates
  • WebSocket integration
  • Live block feed

Acceptance: Explorer shows Core + EVM data accurately

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4.4 Trading Frontend [░░░░░░░░░░] 0/6

• Order placement UI
  • Limit orders
  • Market orders
  • Order cancellation
• Order book display
  • Bids/asks visualization
  • Depth chart
• Position management
  • Current positions
  • PnL tracking
  • Leverage adjustment
• Wallet integration
  • MetaMask connection
  • Transaction signing
• Real-time updates
  • Live order book
  • Position updates
  • Price feed
• Mobile responsive
  • Works on mobile browsers

Acceptance: Users can trade via web interface

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4.5 Developer Tooling & SDKs [░░░░░░░░░░] 0/5

• TypeScript SDK
  • CoreWriter helpers
  • Precompile wrappers
  • Transfer tracking
  • Action status polling
• Python SDK
  • Same features as TS SDK
• Testing framework
  • Local node runner
  • Mock precompiles
  • Scenario testing tools
• CLI tools
  • Account management
  • Transaction submission
  • Action status queries
• Documentation
  • API reference
  • Tutorial series
  • Gotchas guide

Acceptance: Developers can build apps easily

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Phase 4 Success Criteria ✓/✗

• Market making vault formulas verified (4 P0 tests)
• Multi-asset tiering works (5 P1 tests)
• Vault performance metrics met (4 P2 tests)
• RPC server Ethereum-compatible
• Block explorer functional
• Trading frontend usable
• SDK simplifies development
• Documentation complete

Deliverable: Complete user-facing platform

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Phase 5: Security & Launch (3-6 months)

5.1 End-to-End Integration Tests [░░░░░░░░░░] 0/4

• Complete user journey test
  • Deposit → Trade → Withdraw
  • EVM/Core interaction end-to-end
  • Tests: 3 P0 tests in TEST_SPEC section 5.1.1
• Market making vault live test
  • Vault quotes multiple assets
  • Follows Avellaneda-Stoikov
  • Remains profitable
  • Tests: 2 P0 tests in TEST_SPEC section 5.1.2
• Multi-validator network test
  • 7+ validators operational
  • Consensus maintains consistency
  • Byzantine fault tolerance
• Cross-system integration
  • Core + EVM + Vault working together

Acceptance: 5+ P0 tests passing, all systems integrated

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5.2 Stress & Performance Tests [░░░░░░░░░░] 0/4

• High load test
  • Sustained >10k TPS for 24 hours
  • No crashes or memory leaks
  • Tests: 2 P1 tests in TEST_SPEC section 5.2.1
• Network stress test
  • 5% packet loss resilience
  • 100ms latency handling
  • Tests: 2 P1 tests in TEST_SPEC section 5.2.2
• State growth test
  • Long-running chain (weeks)
  • State pruning works
  • Archival nodes functional
• Performance benchmarks
  • All targets met
  • No performance regressions

Acceptance: 4+ P1 tests passing, performance targets met

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5.3 Security Testing [░░░░░░░░░░] 0/5

• Byzantine validator attack tests
  • Safety with f Byzantine validators
  • Liveness with f offline validators
  • Tests: 5 P0 tests in TEST_SPEC section 5.3.1
• Smart contract attack tests
  • Reentrancy prevented
  • Front-running mitigated
  • Double-spend impossible
  • Tests: 10+ P0 tests in TEST_SPEC section 5.3.2
• Fuzzing & chaos testing
  • Random input fuzzing
  • Chaos engineering (random failures)
• Penetration testing
  • External security firm
  • Bug bounty program
• Formal verification
  • TLA+ safety proofs
  • Model checking complete
  • Tests: TLA+ spec in TEST_SPEC section 6.1.1

Acceptance: 15+ P0 tests passing, no critical vulnerabilities

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5.4 External Security Audits [░░░░░░░░░░] 0/3

• Audit #1 (Consensus layer)
  • Firm selected
  • Audit completed
  • All critical/high issues resolved
• Audit #2 (Core DEX engine)
  • Firm selected
  • Audit completed
  • All critical/high issues resolved
• Audit #3 (EVM integration)
  • Firm selected
  • Audit completed
  • All critical/high issues resolved

Acceptance: 3 audits complete, no unresolved critical issues

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5.5 Testnet Deployment [░░░░░░░░░░] 0/6

• Testnet infrastructure
  • 50+ validator nodes
  • Geographic distribution
  • Monitoring & alerting
• Testnet launch
  • Genesis block
  • Initial validator set
  • Faucet for test tokens
• Community testing
  • Public participation
  • Bug bounty program
  • Feedback collection
• Testnet operation
  • 6+ months runtime
  • No chain halts
  • No critical bugs for 3 months
• Governance testing
  • Parameter changes
  • Validator set changes
  • Upgrade procedures
• Performance validation
  • Real-world load testing
  • Sustained >10k TPS
  • <250ms finality

Acceptance: 6 months stable testnet operation

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5.6 Mainnet Launch Preparation [░░░░░░░░░░] 0/5

• Genesis parameters
  • Initial validator set (>50 nodes)
  • Token distribution
  • Governance config
• Launch checklist verification
  • ALL P0 tests passing (390+ tests)
  • 95%+ P1 tests passing
  • Code coverage >90%
  • 3 audits complete
• Validator onboarding
  • Validator documentation
  • Hardware requirements
  • Key generation ceremony
• Monitoring & alerting
  • Block production monitoring
  • Network health dashboard
  • Incident response plan
• Communication & marketing
  • Launch announcement
  • Documentation website
  • Community channels

Acceptance: All launch criteria met, ready for mainnet

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Phase 5 Success Criteria ✓/✗

• ALL P0 tests passing (390+ tests)
• 95%+ P1 tests passing
• 3+ external security audits completed
• 6+ months testnet operation
• No critical bugs in last 3 months
• Validator set >50 nodes
• Code coverage >90%
• Performance targets met
• Formal verification complete
• Governance framework operational
• Community engaged and ready

Deliverable: Production-ready L1 DEX

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Mainnet Launch Criteria ✓/✗

Technical Criteria

• ALL P0 tests passing (390+ tests across all phases)
• 95%+ of P1 tests passing
• Code coverage >90% overall
• Performance benchmarks met:
  • >10k TPS sustained
  • <250ms finality (99th percentile)
  • >100k orders/sec in Core
  • <100μs precompile calls
  • <1ms order matching

Security Criteria

• 3+ external security audits completed
• All critical/high issues resolved
• Formal verification (TLA+) complete
• No critical bugs in last 3 months of testnet
• Byzantine fault tolerance verified
• All attack vectors tested and mitigated

Operational Criteria

• 6+ months stable testnet operation
• Validator set >50 nodes
• Geographic diversity achieved
• Monitoring & alerting operational
• Incident response plan tested
• Validator onboarding complete

Governance Criteria

• On-chain governance functional
• Token distribution fair and complete
• Parameter adjustment tested
• Validator set management tested
• Upgrade procedures verified

Community Criteria

• Documentation complete and published
• Developer tools released
• Community channels active
• Bug bounty program running
• Trading interface launched
• Block explorer operational

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Progress Tracking

Update This Checklist:

1. Mark completed items with [x]
2. Update progress bars using █ (filled) and ░ (empty)
3. Calculate percentages based on completed checkboxes
4. Review weekly and adjust as needed

Progress Calculation:

Phase Progress = (Completed Items / Total Items) × 100%
Overall Progress = Average of all phase progresses

Example:

Phase 1: Consensus [███░░░░░░░] 30%  (12/40 items complete)
Phase 2: Core DEX  [░░░░░░░░░░] 0%   (0/26 items complete)
...

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Last Updated: October 2025
Status: Specification Complete, Implementation Not Started
Next Review: Weekly during implementation

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Related Documents:

• TEST_SPECIFICATION.md - Detailed test cases
• implementation_spec.md - Architecture details
• RISKS.md - Risk assessment
• README.md - Overview & navigation