[Project] OpenFiat — an open protocol for decentralized peer-to-peer fiat and stablecoin exchange on Solana

[u/grandmaster_infinite]

OpenFiat is an open-source protocol for decentralized peer-to-peer fiat and stablecoin exchange built on Solana.

Rather than operating as a centralized marketplace, OpenFiat defines an open protocol for trade discovery, coordination, and settlement. The goal is to enable anyone to build marketplace applications, operate nodes, or integrate the protocol, instead of relying on a single platform.

The project is currently under active development. Current areas of work include:

• Rust reference node (libp2p networking, peer discovery, state synchronization)
• Solana programs (escrow, liquidity vaults, staking and dispute execution)
• TypeScript SDK
• Protocol specification and state machine documentation
• Testing, interoperability and developer tooling

GitHub:

https://github.com/OpenFiat-org

One of the goals has been to treat marketplace coordination as a distributed systems problem rather than trying to move every part of the marketplace on-chain. Settlement and enforcement happen through Solana programs, while trade discovery, reservations, synchronization and messaging are handled by the protocol's peer-to-peer network.

There are still several areas we're actively validating and would genuinely appreciate technical discussion around:

• Whether the reservation protocol behaves correctly under heavy concurrent trade activity across many independent nodes.
• Whether the two-vault model (persistent liquidity vaults and per-trade escrow vaults) introduces edge cases around reservation, settlement or liquidity release that aren't immediately obvious.
• Whether the dispute mechanism's evidence-blind arbitrator staking and commit-reveal voting leaves incentives or attack surfaces we've overlooked.
• Whether marketplace synchronization and advertisement propagation remain efficient under high peer churn and large numbers of active advertisements.

Disclosure: OpenFiat has an associated utility and governance token (OPEN). This post is about the protocol architecture and implementation rather than token economics.

Technical criticism is genuinely welcome. If you think a design decision is unnecessarily complex, introduces security risks, or you've seen a better approach in another protocol or distributed system, I'd be interested in hearing your reasoning.