Smart Brokerage Engine

Introduction

The Smart Brokerage Engine (SBE) is the foundational layer of the Vestora Protocol that serves as the critical bridge between decentralized cryptocurrency assets and traditional equity markets. As the intermediary component, the SBE enables seamless execution of stock transactions while maintaining cryptographic proof of authenticity and tokenization on demand for full scalability.

Transaction Flow (End to End)

1. Deposit Phase

2. Order Placement

3. Execution Phase

4. Tokenization Phase

Core Components of SBE

1. Order Management: Processing, validating, and routing user orders through the system.

   • Order Validation: Verify user deposits, KYC status, and trading permissions

   • Order Routing: Intelligently route orders to optimal brokerage partners

   • Risk Management: Implement position limits, market hours validation, and liquidity checks for P2P trading.

   Order States:

State	Description	Next Actions
PENDING	Order received, awaiting validation	Validate → VALIDATED or REJECTED
VALIDATED	Order passed all checks	Route → ROUTING
ROUTING	Selecting optimal brokerage	Execute → EXECUTING
EXECUTING	Order sent to brokerage	Complete → COMPLETED or FAILED
COMPLETED	Order successfully executed	Generate PoT → TOKENIZED
FAILED	Order execution failed	Refund → REFUNDED

1. Brokerage Adapter Framework: A standardized interface layer that abstracts different brokerage APIs into a unified format.

   Supported Brokerages are:

   • Alpaca Markets: Primary U.S. equity execution

   • DriveWealth: International market access

   • Interactive Brokers: Institutional-grade execution

Brokerage	Orders / Second	Market Data / Second	Account Calls / Minute
Alpaca	200	1000	60
DriveWealth	100	500	30
Interactive Brokers	50	2000	120

1. Custom Adapters: Extensible framework for additional brokerage

   interface BrokerageAdapter {
     authenticate(): Promise<AuthToken>;
     placeOrder(order: StandardOrder): Promise<ExecutionResult>;
     getOrderStatus(orderId: string): Promise<OrderStatus>;
     getAccountBalance(): Promise<Balance>;
     generateProof(transaction: Transaction): Promise<zkTLSProof>;
   }

2. Compliance and Risk Checker: Ensures all transactions meet regulatory requirements and risk parameters.

   Compliance Checks:

   • Geographic Restrictions: Enforce Regulation S compliance for U.S. securities

   • AML/KYC Verification: Validate user identity and source of funds

   • Position Limits: For P2P trading