Crybit Introduction

Crybit is a high-performance cryptocurrency derivatives exchange built on the Starknet application chain.

With rich experience in financial product development and operation, it is composed of professionals with an international perspective and focuses on providing reliable digital asset financial services to global digital asset traders. At present, its main

digital asset products and services are such as the Pushcoin Silver Wallet APP and the CoinsDo digital asset payment system.

Crybit enables developers, liquidity providers and traders to participate in an open and accessible

financial trading market. Crybit Exchange is a unique trading platform located in New York, USA, which allows

users to trade ERC-20 tokens without any middlemen.

The Crybit Protocol is a peer-to-peer system[1] for trading cryptocurrencies

(ERC-20 tokens) on the Ethereum blockchain. The Crybit Protocol consists of an immutable, persistent and non-transparent protocol running on Ethereum.

Upgraded smart contract definition. It is designed to operate without relying on any trusted intermediaries that may selectively restrict access.

Transactions. The Crybit Protocol is designed to be censorship-resistant, secure and self-regulatory. The code is open source for all to read and verify.

Due to these design principles, the Crybit Protocol will run forever with 100% uptime, and before that
it is important to mention that the Ethereum network continues to run

Most publicly accessible markets use a central limit order book, where buyers and sellers create groups at price levels

weave orders that gradually fill up as demand changes. Anyone who has traded stocks through a brokerage firm will be familiar with

the order book system.

The Crybit Protocol takes a different approach, using an automated market maker (AMM), sometimes called a constant function

calculated market maker instead of an order book.

At a very high level, an AMM replaces buy and sell orders in an order book market with a liquidity pool of two assets.

With a sell order, both assets are valued relative to each other. When one asset is traded against another, the relative price of the two assets will change, determining a new market rate between the two. In this dynamic, a buyer or seller trades directly with a pool, rather than with a specific order left by another party. An increasing number of parties are actively researching the pros and cons of automated market makers versus their traditional order book counterparts. We have collected some notable examples on our research page.

The Crybit ecosystem includes three types of users:

Liquidity Providers (LPs): Individuals or entities that contribute ERC-20 tokens to public liquidity pools.

Traders: Individuals or entities that exchange one token for another.

Developers: Individuals or entities that integrate with the Crybit Protocol smart contracts to provide exciting new experiences.

Overall, the interaction between these categories creates a positive feedback loop to support the digital economy by defining a common language through which tokens can be pooled, traded, and used.

Liquidity Providers
Liquidity providers, or LPs, contribute ERC-20 tokens to Crybit liquidity pools. Large pools are smaller than
Better prices from pools facilitate high-volume trading. LPs, therefore, play a role in providing liquidity to traders

LPs are not a homogeneous group:

Passive LPs are token holders who wish to passively invest in assets to accumulate trading fees.

Professional LPs focus on market making as their primary strategy. They often develop custom tools and methods to track liquidity positions across different DeFi projects.

Token projects sometimes choose to become LPs, creating a liquid market for their tokens. This makes it easier to buy and sell tokens and unlocks interoperability with other DeFi projects through the Crybit Protocol.

Finally, some DeFi pioneers are exploring complex liquidity provision interactions, such as incentivized liquidity, liquidity as collateral, and other experimental strategies. The Crybit Protocol is a great fit for projects trying out these ideas.

Traders

There are several types of traders in the protocol ecosystem:

Speculators use liquidity extracted from the Crybit Protocol to exchange tokens using various community-built tools and products.

Arbitrage bots seek profits by comparing prices on different platforms to find an edge. (While it may seem very extractive, these bots actually help balance prices in the broader Ethereum market and keep it fair.)

Dapp users purchase tokens through the Crybit Protocol for future use in other applications on Ethereum.

By implementing swap functionality to execute on the protocol, products such as DEX aggregators to custom Solidity