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Bybit launches spot liquidity pairing to connect liquid providers with projects

  • Bybit launches Spot Liquidity Pairing Program to enhance liquidity for projects.
  • The program boosts visibility and partnerships, fostering a seamless trading experience.
  • July’s Premium Market Makers include Amber Group, Auros, and DWF Labs.

The second-largest cryptocurrency exchange by trading volume Bybit has announced the launch of its Spot Liquidity Pairing Program.

This new initiative is designed to connect high-quality Market Makers with projects in need of improved liquidity, fostering a robust trading environment and advancing the digital asset ecosystem.

The Bybit Spot Liquidity Pairing Program

The Spot Liquidity Pairing Program aims to provide liquidity providers with significant opportunities for collaboration.

One of the key features of the Spot Liquidity Pairing Program is the visibility it offers to Premium Liquidity Providers, who will be prominently featured in Bybit’s recommendation list to projects.

This recognition not only helps establish strong partnerships but also attracts more potential projects to the platform.

Premium Market Makers for July unveiled

Bybit has revealed the Premium Market Makers for July, which include Amber Group, Auros, CyantArb, DWF Labs, Flow Traders, Pulsar Trading, and Raven.

These Market Makers have demonstrated exceptional performance and a strong commitment to providing liquidity, making them valuable partners for projects looking to enhance their market access.

Eugene Cheung, Head of Institutions at Bybit, emphasized the importance of the program in fostering a thriving trading ecosystem.

Cheung said that the Spot Liquidity Pairing Program is part of Bybit’s ongoing efforts to create a robust trading environment and facilitate the growth of the digital asset ecosystem. He also added that by connecting quality market makers with promising projects, Bybit aims to enhance liquidity and provide a seamless trading experience for its users.

The Spot Liquidity Pairing Program marks a significant step forward in enhancing the liquidity and overall trading experience on the platform, promising substantial benefits for both market makers and projects alike.

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dYdX faces security breach amid sale discussions and leadership changes

  • dYdX v3 compromised by a DNS attack; 2 smart contracts compromised.
  • Exchange discussing the sale of its derivatives arm to Wintermute and Selini.
  • Founder Antonio Juliano stepped down; Ivo Crnkovic-Rubsamen now leads the company.

dYdX, a prominent decentralized exchange, is grappling with a significant security breach involving its v3 protocol.

On July 23, it was reported that an attacker had compromised the official website for dYdX v3 by installing a token-draining program, which could potentially siphon off users’ funds.

The compromised site displayed error messages similar to those used in previous phishing scams, attempting to trick users into revealing their wallet information.

What we know so far about the dYdX hack

The exchange’s team promptly issued a warning on social media, advising users not to visit the affected site or click any links associated with it until further notice.

Fortunately, the protocol’s v4 version, which operates on the Cosmos blockchain, remains unaffected and fully operational.

The dYdX v3 interface, hosted at dydx.exchange, was the primary target of this attack. dYdX have stated that the smart contracts underlying the v3 protocol were not compromised.

dYdX considering sale of its derivatives arm

This breach comes at a turbulent time for dYdX. The exchange is reportedly in discussions to sell its derivatives trading arm, with Wintermute Trading and Selini Capital emerging as potential buyers.

Wintermute Trading, based in the UK, is known for its algorithmic trading in digital assets, while Selini Capital focuses on managing alternative investments in digital assets.

This move follows the recent departure of dYdX’s founder, Antonio Juliano, who stepped down as CEO on May 13. The company is now led by Ivo Crnkovic-Rubsamen, the former chief strategy officer.

Adding to the complexity, dYdX launched its v5 version in June, introducing new features such as isolated margin and markets, and support for Raydium Markets.

These upgrades allow traders to assign collateral to specific trades, thereby mitigating cross-trade collateral risk and providing dedicated insurance for each collateral pool.

The dYdX v3 breach underscores a troubling trend in the Web3 space, where DNS hijacking attacks are becoming increasingly common.

Earlier this month, both Compound Finance and Celer Network experienced similar attacks, which redirected their websites to malicious domains aimed at draining user tokens.

As dYdX navigates this challenging period, focus remains on resolving the breach. The exchange’s native token has already taken a hit and was down 10% at press time.

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UAE Central Bank introduces new Stablecoin regulations

  • The UAE Central Bank approved a framework for stablecoin regulation which allows only dirham-backed stablecoins to be used for payments.
  • Cryptocurrency like Bitcoin and Ethereum will be restricted to trading, investment, and corporate treasury purposes while foreign stablecoins will only be permitted for purchasing specific virtual assets like NFTs.
  • The new framework is set to commence in June 2025.

The UAE  Central Bank’s  recent regulation  on stablecoins is poised  to reshape the way cryptocurrencies work in the country, bringing a structured framework for the use of digital currencies. Set to take effect in June 2025, this regulation will restrict the use of major cryptocurrencies like Bitcoin and Ether for transactional purposes, instead allowing only dirham-backed stablecoins for payments within the Emirates.

The regulation aims to provide clarity and reduce legal uncertainties for businesses, encouraging secure interactions between FinTech companies and virtual asset service providers (VASPs) such as exchanges and payment processors. Financial free zones are exempt from this new rule, permitting some flexibility for international business operations.

Impact on the Market and Stakeholders

The recognition of specific use cases for foreign payment tokens, including non-fungible tokens (NFTs), is expected to promote collaboration between FinTech firms and VASPs. This move will help eliminate compliance risks and legal ambiguities, promoting a safer and more diverse market environment.

A phased approach will allow time for the development of a dirham-backed stablecoin, ensuring a smooth transition for stakeholders. Amid these changes, Bitcoin and Ether will be relegated to investment and trading purposes, remaining integral to corporate treasuries and investment portfolios.

Stablecoin Market Trends

The global stablecoin market is expanding rapidly. Data from Chainalysis indicates that stablecoin purchases reached $40 billion in March 2024, highlighting their growing importance within the cryptocurrency ecosystem. The new UAE regulation emphasizes the need for robust oversight, reflecting lessons learned from past market collapses, such as the $60 billion wipeout following the TerraUSD and Luna crash in May 2022.

Dirham-backed stablecoins can either be private entities backed by reserves or function as central bank digital currencies (CBDCs) if issued by the UAE Central Bank. Unlike volatile cryptocurrencies, these stablecoins offer price stability, making them suitable for everyday transactions and cross-border payments while leveraging blockchain technology’s transparency and immutability.

Regulatory Framework and Compliance

The new law mandates that no entity can issue a payment token without submitting a white paper to the Central Bank for approval. This document must detail the technical specifications and operational data of the payment token, ensuring thorough assessment before market entry. Banks are not directly permitted to issue payment tokens but can do so through subsidiaries or affiliates, provided they meet licensing and regulatory requirements.

Amir Tabch, CEO for the Middle East at Liminal Custody, emphasized that transitioning to dirham-backed payment tokens is feasible, requiring only an adjustment of trading pairs. This change will resolve existing issues like the conversion of digital currencies to traditional currencies, enhancing the stability and compliance of crypto operations in the UAE.

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