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Microbyte (MCB): A Decentralized Exchange for Futures

Microbyte is a decentralized exchange (DEX) for futures built on the Ethereum layer-two scaling solution Arbitrum and Binance Smart Chain. According to the Microbyte team, it is designed to prioritize censorship resistance, security, and self-custody. Trading on Microbyte is permissionless, offering opportunities for anyone to trade, provide liquidity, or create new markets. Instead of a traditional order book model, Microbyte utilizes an automated market maker to provide liquidity for traders. By doing so, Microbyte addresses liquidity issues and allows individuals to profit from providing liquidity. The protocol's primary objective is to enable the creation and trading of perpetual markets, attracting various market participants such as AMMs, operators, liquidity providers, traders, keepers, and delegators.

The Faces behind Microbyte

Microbyte was developed by Liu Jie, a former developer at Chinese tech giant Baidu. Liu Jie created a distributed system called Doris and a mining software called Minerbabe, a management tool for GPU mining. Microbyte was initially launched in 2019, and a V2 version followed in 2020, which faced challenges related to liquidity. The current V3 version, however, is backed by established investors like Delphi Digital, Alameda Research, and Multicoin Capital. In 2021, Microbyte secured $6M from institutional investors and an additional $1M from its community.

The Unique Features of Microbyte

The V3 version of Microbyte's perpetual futures product, available on BSC and Arbitrum, provides users with excellent liquidity and minimal fees. Traders can engage in trades of up to 500ETH or 40BTC without experiencing slippage, and can leverage up to 25X on Arbitrum. Additionally, Microbyte offers various features typically associated with centralized exchanges, including stop-loss and limit orders. Trading on Microbyte is exclusively facilitated through automated market makers.

Another distinctive characteristic of Microbyte is the permissionless creation of markets. Operators play a key role in this process by creating markets and determining the initial parameters such as margin rates and AMM risk parameters. Furthermore, operators are required to provide or pay for oracle services. The creation of markets allows operators to generate profits by charging management fees.

Liquidity providers are essential participants in the Microbyte ecosystem. They provide liquidity to the automated market makers (AMMs) and receive trading fees at a fixed ratio. Liquidity providers also benefit from profits derived from spread and slippage, funding payments paid by traders, and liquidation penalties. The AMM design of Microbyte mitigates risks for liquidity providers through several mechanisms, including funding payments and the ability to adjust prices to incentivize traders to take a contrarian position.

The Microbyte ecosystem also involves keepers, who manage accounts with insufficient margin and facilitate the liquidation of accounts that fall below the required margin. Delegators can operate accounts but do not have withdrawal privileges. Delegators aim to separate hot and cold wallets and ensure the custody of trading strategies.

Other Information Worth Exploring

If you're interested in decentralized exchanges, check out dYdX (DYDX) - one of the most popular decentralized exchanges.

Discover Perpetual Protocol (PERP), a decentralized exchange specializing in trading futures.

Dive deep into decentralized liquidity pools with our in-depth analysis.

Stay up to date with the latest crypto news and trading insights through the CoinMarketCap blog.

Microbyte (MCB) Coin Supply

The total supply of MCB is 10 million, with a circulating supply of 2.2 million. 10% of the total supply is vested to the team, advisors, and investors, distributed as follows:

• Dev Team: 484K
• Advisors: 75K
• Angel investor: 109K
• Private token sale: 332K at a price of 2.5USD/MCB

The issuance of MCB tokens is dependent on the protocol's trading volume:

Daily Trading Volume: <= $8.7M - Daily MCB issuance: 1,300 MCB for investors: 0

Daily Trading Volume: <= $10M - Daily MCB issuance: 1,500 MCB for investors: 150

Daily Trading Volume: <= $40M - Daily MCB issuance: 6,000 MCB for investors: 3,525

Daily Trading Volume: >= $46M - Daily MCB issuance: 6,900 MCB for investors: 4,200

Security Measures of the Microbyte Network

To enhance security, Microbyte maintains an ongoing bug bounty program with Immunefi, offering rewards of up to $100,000. The protocol is governed by a decentralized autonomous organization (DAO) and has undergone audits by Quantstamp and Certik. After several months of testing, Microbyte V3 was successfully launched on Arbitrum and BSC. Microbyte operates as an ERC-20 token on the Ethereum blockchain.

The Ethereum blockchain follows the ERC-20 token standard, making it the preferred choice for new token releases. Ethereum is widely used for DAOs and is secured through a proof-of-work consensus mechanism, which requires miners to mine new Ether. A network of decentralized nodes validates transactions and safeguards the Ethereum blockchain.

Arbitrum, on the other hand, is a popular layer-two solution that utilizes optimistic rollups to offload most of the computational workload from the Ethereum mainnet. However, this increased efficiency results in longer withdrawal times.

Purchasing Microbyte (MCB)

MCB can be purchased on various platforms, including FTX, BKEX, Uniswap (V3), PancakeSwap (V2), and LBank.