⏺️Market Overview

Background

Decentralized exchanges (DEXes) have experienced rapid growth since 2020, with DEX's monthly volume exceeding $162 billion in May 2021. Instead of order books, most DEXes have adopted the automated market maker (AMM) design to bootstrap passive and algorithmic liquidity into liquidity pools. With this approach, liquidity takers can trade against an AMM of any size. To compensate liquidity providers (LPs) for impermanent loss, traders typically pay a fixed fee of up to 0.3% distributed proportionally to the amount of liquidity provided by each LP. The trading fee, coupled with gas fees that vary across networks, makes the cost of trading on DEXes much higher than on centralized exchanges (CEXes). In contrast, CEXes typically charge no more than a 0.1% fee and can be even lower with rebates.

Uniswap v3 enables “concentrated liquidity”, which allows LPs to concentrate their capital into narrower price ranges. This approach results in higher capital efficiency since liquidity is not provided far away from current prices. With concentrated liquidity, LPs need to actively manage their liquidity positions in response to price fluctuations. Failure to do this may result in sharper impermanent loss and fewer fees earned as the price goes "out of range".

The Proactive Market Making (PMM) algorithm, first introduced by DODO, is another approach proven to be highly performant and capital-efficient via its on-chain generation of the order book. In addition, DODO allows professional market makers to create private liquidity pools with more controls over the quoting to further enhance capital efficiency.

Introducing BBANKCRYPTO DEFI

We expect DeFi to gradually compete with centralized exchanges as it becomes more mature and efficient, in terms of trading volume, liquidity, and transaction cost. BBANKCRYPTO Network helps decentralized exchanges and market makers by bridging the liquidity between CeFi and DeFi with a combination of liquidity pools, on-chain price feeds, and hedging strategies. This toolset has been consistently powering on-chain market-making strategies with an aggregate average daily volume of $300M. These trading strategies span multiple blockchains and scaling solutions, including DEXes like DODO, dYdX, 0x, and Paraswap. In turn, this approach has allowed BBANKCRYPTO Network to internalize on-chain order flow.

BBANKCRYPTO comprises of a decentralized exchange featuring CeFi level price execution, the lowest swap fee, one-click cross-chain swaps, and liquidity provision with single-sided staking. It consists of three key modules:

Swap

A multi-chain decentralized exchange with the highest capital efficiency in DeFi, providing users with high-quality trade execution and the lowest swap fees. The BBANKCRYPTO liquidity pool provides interfaces for other DeFi applications, such as aggregators, to plug in and get cheap liquidity.

Earn

A DeFi yield optimizer provides the hassle-free experience of earning in DeFi with "set-and-forget" type of vaults. Supercharger earn vaults combine auto-compounding yield farming with liquidity provision in BBANKCRYPTO Swap to maximize capital efficiency.

Stake

Allow users to stake BBANKCRYPTO tokens to capture the fee from BBANKCRYPTO Swap and Earn and increase their yield on BBANKCRYPTO tokens