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Cube Exchange at Solana Breakpoint 2023 (Video)

Join Cube CEO Bartosz Lipinski at Solana Breakpoint 2023 as he unveils Cube Exchange, a groundbreaking platform fusing centralized and decentralized trading.

At Cube, our journey has been nothing short of extraordinary. A year ago, I might have been hesitant if you had asked me about launching an exchange before Solana Breakpoint. Despite my decade-long experience in traditional finance at institutions like Citadel and several investment banks, the shift from enjoying NFTs to facing the challenges of an exchange seemed daunting.

The turning point came last year during Solana Breakpoint, where the FTX incident unfolded. This event significantly impacted the crypto community, and I felt compelled to contribute to a solution. With Cube's CTO and co-founder Larry, we delved into understanding the core issues of trust and reliability in digital asset exchanges.

The Challenge of Self-Custody and Liquidity in Exchanges

Our analysis revealed two primary concerns in the existing exchange models: self-custody complexity and the lack of liquidity in decentralized exchanges (DEXs). Self-custody, while empowering, poses significant challenges, especially for those new to crypto. I’ve experienced this firsthand - imagine the panic when a Ledger wallet ends up in a washing machine!

To address these concerns, we developed an innovative solution - a Vault using Multi-Party Computation (MPC) infrastructure. This system enables users to secure their tokens with the broader network's help while undergoing a standard KYC process, similar to centralized exchanges.

Integrating On-chain and Off-chain Components

Our next focus was liquidity. We recognized that market makers preferred centralized exchanges for their interface and the assurance of quick order cancellations. To bridge this gap, we created a unique model integrating both on-chain and off-chain components. Our off-chain component, built from scratch using Rust, provides a traditional API with fixed connectivity and websocket support for market makers. Simultaneously, the on-chain component leverages the MPC infrastructure for secure token storage.

The Unique Approach of Cube Exchange

Cube Exchange stands out by allowing direct trading of native assets like Bitcoin, Ethereum, Solana, and others without resorting to wrapped assets. This unique feature mitigates the risks associated with the minting process of wrapped assets.

Our two-layered approach - Cube Exchange and the settlement layer - ensures transparency and reliability. We’ve onboarded guardians, similar to Solana Network validators, who manage the MPC wallets on each layer one blockchain, thereby decentralizing the settlement process.

Progress and Future Outlook

Developing Cube Exchange has been a complex and enlightening journey. Integrating multiple blockchains, particularly Bitcoin, proved more challenging than anticipated. However, our dedication to offering a unique trading experience remains unwavering.

As we integrate more blockchains and enhance our platform, our commitment to security, transparency, and efficiency in digital asset trading continues to strengthen. We invite you to experience Cube Exchange and join us in shaping the future of digital asset trading.