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In Q3 of 2020, the trading volumes of decentralized exchanges (DEX) witnessed a massive growth (88%) and outpaced CEX where the trading volume market share reduced significantly.
According to the report published by popular crypto data aggregator Coingecko, DEX volume stands at 6% of CEX. Quite evidently, crypto traders are exploring new possibilities in the exchange space. And that is why hybrid cryptocurrency exchange development is gaining momentum among traders and services providers.
2020 has been the year of DeFi hype. To make the most from farming frenzy and crypto rally, traders kept juggling between the CEXs and DEXs. To fill the gaps, services providers are proactively looking for hybrid crypto exchange software that provides the benefits of both CEXs and DEXs into one. This means hybrid exchanges offer traders the liquidity and functionality of a CEX and top it with the security and privacy of a DEX.
Management of Liquidity
While the centralized exchanges maintain good liquidity by injecting enormous capital, DEXs are dependent on the number of users for the same. When a DEX is new, the users are less and the liquidity is low leading to major issues like price slippage. Fortunately, the hybrid exchange space has adopted the liquidity management of centralized exchanges. Moreover, hybrid cryptocurrency exchange development services ensure that it sets up complete information about the order book in a transparent manner.
Escrow is a legal concept that is used to control and protect digital assets. A hybrid cryptocurrency exchange uses an escrow to hold the assets being exchanged by two counterparties. While it acts like a third-party guarantor, it also controls the entire process of exchange of assets. This is the method by which a hybrid crypto exchange operator ensures the user’s assets remain secured.
Creation of Atomic Swap Exchange
A hybrid exchange uses a smart contract to exchange one crypto asset for another without the involvement of a third party. This smart contract is known as atomic swap and it enhances the security of the underlying trade. Along with that, it enables faster trading of less liquid assets too.
· Hybrid exchanges are designed to be faster than DEXs and support real-time service access.
· Users seek complete ownership of their funds even when the third parties regulate and operate the exchange.
· Hybrid exchanges provide complete privacy and anonymity to the exchange users.
· They are compliant with different digital currency laws in different jurisdictions.
· Protect users’ assets from hacks as the assets are stored in cold storage.
The complete process of Hybrid cryptocurrency exchange development
Antier Solutions houses a team of blockchain experts who help you identify your requirements. Once these are identified, we conduct thorough market research to establish the viability of the idea, analyse the competitors in the space and determine the development strategy.
Our development team and strategists sit together to brainstorm how the final hybrid exchange must operate in the backend and how it should look on the frontend.
Following a rigorously planned structure, the development starts building a hybrid exchange from scratch or using a white label exchange development script.
With an in-house team of testers we ensure, the product goes through the cycle of unit testing, integration testing, regression testing, and more.
Once the final product is ready, it is deployed in production and our team provides extensive post-deployment support too.
Over years of blockchain development, we have mastered the art of a transparent development process and pricing. That is how we can deliver all-inclusive development support at the best prices. Needless to say, we are just a call away!
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