Traditional decentralized exchanges (DEXs) face several challenges that hinder their effectiveness and user adoption. Many DEXs struggle with low liquidity, slow transaction speeds, and security vulnerabilities, thereby making it difficult for traders to execute large orders without causing significant price changes. GRVT addresses these issues through its innovative hybrid exchange model.

By integrating both on-chain and off-chain components, GRVT ensures higher liquidity, allowing traders to execute orders quickly and efficiently. The platform achieves transaction speeds of up to 600,000 transactions per second, significantly reducing delays and improving the trading experience. Utilizing zkSync technology, GRVT enhances privacy and security, protecting users from common threats associated with both centralized and decentralized exchanges.

What is GRVT?

Source: GRVT website

GRVT is the first custodial hybrid crypto exchange powered by zero-knowledge (ZK) technology. It stands out as the first official Appchain on zkSync’s Hyperchain, combining the strengths of centralized and decentralized exchanges to offer a seamless trading experience.

GRVT enhances user security and privacy while maintaining high transaction speeds and liquidity. This hybrid approach allows users to benefit from the efficiency of centralized exchanges and the security of decentralized exchanges, making GRVT a unique player in the crypto trading space.

Mission and Vision of the Project

The mission of GRVT is to revolutionize crypto trading by addressing the limitations of traditional DEXs. GRVT aims to create a platform that is fast, secure, and user-friendly, catering to both beginners and experienced traders. The vision is to set a new industry standard, making crypto trading more efficient and secure for everyone.

The Team Behind GRVT

The success of GRVT is driven by a team of experienced professionals:

• Hong Yea (CEO): Yea’s foresight and experience have been instrumental in steering GRVT towards its current successes and future aspirations. His transition from traditional finance to crypto innovation reflects a broader industry shift.
• Aaron Ong (CTO): Ong’s expertise has been vital in the seamless integration of advanced technological features into GRVT, ensuring a secure and efficient trading experience.
• Matthew Quek (CCO): Quek’s insights into blockchain applications in finance continue to guide GRVT’s strategic positioning and product diversification.

Key Features of GRVT

Hybrid Exchange Model

GRVT combines the best aspects of centralized exchanges (CEX) and decentralized exchanges (DEX) to create a hybrid exchange model. This approach ensures high liquidity and fast transaction speeds, typical of CEXs, while maintaining the security and user control associated with DEXs.

Decentralized Settlement and Self-Custodial Trading

GRVT offers decentralized settlement and self-custodial trading, allowing users to retain control over their funds. This feature ensures that users’ assets are secure and not held by a third party, reducing the risk of hacks and fraud.

High Transaction Speed

With the ability to process up to 600,000 transactions per second, GRVT provides a fast and efficient trading experience. This high transaction speed minimizes delays and allows traders to capitalize on market opportunities quickly.

Multi-layered Security

GRVT employs multi-layered security measures to protect users’ assets and data. By utilizing advanced encryption and zkSync technology, GRVT ensures that transactions are secure and private.

Role-Based Access Control

To enhance security and manageability, GRVT implements role-based access control. This feature allows administrators to assign specific roles and permissions to users, ensuring that only authorized individuals can access sensitive information and perform critical actions.

GRVT Wallet

The GRVT Wallet is designed to provide a secure and user-friendly experience. It supports multiple cryptocurrencies and offers easy asset management, transaction tracking, and enhanced security protocols.

Efficient Risk Management

GRVT incorporates efficient risk management tools to help traders minimize potential losses. These tools include real-time monitoring, automated alerts, and advanced analytics, enabling users to make informed decisions.

KYC & AML Compliant

GRVT adheres to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, ensuring a safe and compliant trading environment. This compliance helps prevent illegal activities and protects the integrity of the platform.

ZK-powered On-chain Privacy

By leveraging zero-knowledge (ZK) technology, GRVT enhances on-chain privacy. This feature ensures that transaction details are kept confidential, protecting users’ financial information from prying eyes.

Earn Trading Rewards

GRVT offers a rewards program that allows users to earn incentives for their trading activities. This program encourages active participation and provides additional value to traders.

GRVT Architecture

GRVT’s architecture integrates on-chain and off-chain components to provide a seamless and efficient trading experience.

Source: GRVT Documentation

Off-chain Components

Initially, GRVT servers process all user actions off-chain. Actions that impact user funds, such as trades or account creation, are eventually pushed on-chain. Non-fund-related actions, like KYC, remain off-chain. The GRVT servers forward relevant user actions to the GRVT chain. Key user actions that are pushed on-chain include:

• Matching Engine: Orders matched by the matching engine are sent on-chain.
• Risk Engine: Liquidations are sent to the chain.
• Account Management: Creation of trading accounts or addition of wallets that can use funds.
• Fund Management: Internal and external transfer of funds.

On-chain Components

Some off-chain actions are pushed to the GRVT chain and verified on Ethereum using zero-knowledge proofs. Key on-chain processes include:

• Trade Settlement: Matched orders are settled on-chain.
• Risk Engine Validation: Liquidations are validated on-chain to ensure fairness.
• Account Management Validations: Account management actions are validated on-chain.
• Fund Management: Fund transfers are validated and settled on-chain.

Core Concept of GRVT

Accounts and Users

• Funding Account: The funding account is the highest level of on-chain identity in GRVT. It primarily handles fund management, including deposits, withdrawals, external transfers to other funding accounts, and internal transfers to linked trading accounts.
• Trading Account: Each funding account can link to multiple trading accounts. Funds must be transferred from the funding account to a specific trading account to trade derivatives. This separation enhances security and helps in better fund management.
• Users: GRVT supports individual and business accounts, catering to a wide range of traders. Each account has a maximum of one user accessing all linked trading accounts. On the other hand, business accounts can have one or more users with separate access to the funding account and/or trading account, depending on their permissions.

GRVT Identifiers

To ensure secure and efficient management of accounts and transactions, GRVT uses unique user and account identifiers.

User Identifiers

• Web2 Credentials (Emails): Users can sign up via email with a password setup or Google/Microsoft OAuth. This grants access to non-trading features such as completing KYC, referrals, and viewing portfolios and positions.
• Web3 Credentials (Wallets): Users must register a wallet on GRVT to enable trading features. The trading engine can only execute trades signed with registered wallets. Actions affecting asset ownership, such as trading, require a registered wallet.

Account Identifiers

The on-chain Funding Account ID matches the wallet address that created the account. Business accounts can have multiple users, each with their own wallet linked to the funding account.

GRVT API Key

GRVT provides API keys at the trading account level with trade-only permissions, tagged to a valid Ethereum public address. An API key is a unique identifier used to authenticate and authorize transactions, serving as a secure form of access control. API keys enable traders to automate their trading strategies by programmatically interacting with the platform, allowing for faster trade execution and data analysis.

Key points to consider when generating API keys on GRVT:

• Each trading account can create up to 5 API keys.
• API keys must be tagged to a valid Ethereum public address.
• After generating an API key, a session token is received. Together with the wallet signature, it can be used to authorize trades.

GRVT Products

GRVT offers a range of products designed to cater to various trading needs and preferences. Here’s an overview of the key products available on the platform:

Perpetual

Perpetual contracts are a type of derivative that allows traders to speculate on the price of an asset without owning it. Unlike traditional futures contracts, perpetual contracts do not have an expiration date, so traders can hold their positions for as long as they want. GRVT’s perpetual contracts offer high liquidity and leverage, making them a popular choice for traders looking to maximize their potential returns.

Options

Options are financial instruments that give traders the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified period. GRVT offers a variety of options contracts, allowing traders to hedge their positions or speculate on market movements. These contracts provide flexibility and can be used to implement various trading strategies.

RFQs (Request for Quotes)

RFQs allow traders to request quotes for specific trades. This feature lets users get competitive pricing for large orders, ensuring they get the best possible deal. With RFQs, traders can avoid the slippage that often occurs with large trades on traditional exchanges.

Trade Arcades

Trade Arcades are interactive trading environments where users can engage in various trading activities. These arcades provide a gamified experience, making trading more engaging and enjoyable. They also offer educational resources and tools to help traders improve their skills and strategies.

Market

The GRVT Market is a comprehensive platform where users can buy and sell various cryptocurrencies. It offers advanced trading tools, real-time data, and a user-friendly interface, making it easy for traders to navigate the market and execute their trades efficiently.

Reward Portal

The Reward Portal is designed to incentivize active participation on the GRVT platform. Users can earn rewards for trading activities, referrals, and other contributions. These rewards can be redeemed for various benefits, such as reduced trading fees, exclusive access to new features, and more.

How GRVT’s Self-Custodial Trading Works

GRVT offers a trading experience similar to centralized exchanges like Binance but with a key difference: self-custody. This means that users retain full control over their funds, reducing the risk of exchange counterparty failures. Here’s how self-custodial trading works on GRVT:

Step 1: Create an Account

To begin, users need to create a GRVT account. This involves setting up a password and enabling two-factor authentication (2FA). Users must also complete the Know Your Customer (KYC) verification process and comply with Anti-Money Laundering (AML) regulations.

Step 2: Create a Wallet

First-time users can start with a default GRVT wallet, simplifying the setup process using familiar security features like passwords and 2FA to access private keys. GRVT cannot access these private keys, so users must control their assets fully. Users with existing wallets like Metamask or Ledger can connect them to GRVT to start trading.

Step 3: Transfer Funds

After setting up the account and wallet, users can deposit funds into their GRVT wallet. These funds need to be transferred to a trading sub-account to begin trading. The wallets are powered by smart contracts, which act as decentralized escrow secured by the users’ private keys. Only the users can access and sign transactions with their funds.

Step 4: Make a Trade

Smart contracts power trading on GRVT and combines off-chain order matching with on-chain settlement. To buy or sell a perpetual contract, users use their smart contract funds and sign the transaction with their private key.

• Smart Contract Verification: The smart contract checks its validity once a signed transaction is received. The smart contract executes the trade if valid based on its rules and the exchange’s conditions.
• Buyers: Buyers submit quotes against sellers. When a quote is matched, the smart contract locks the required margin to execute the contract.
• Sellers: Sellers submit quotes against buyers. When a quote is matched, the funds are received in the seller’s sub-account, controlled by the seller’s private key.
• Settlement and Liquidation: In derivatives trading, contracts eventually settle or liquidate. The smart contract automates these processes based on pre-set rules, such as when a trader’s position falls below the required margin.
• dApp Sessions: Typically, users must sign every transaction when trading on-chain or engaging with decentralized applications (dApps). GRVT offers a more convenient method by allowing users to make multiple trades with a single signature for a defined period. This session key means users don’t have to use their main key for every trade.
• Trader Access Controls: An industry-first feature, GRVT enables using multiple private keys to manage a single sub-account, each with customizable permissions. For example, one user might be authorized solely for depositing funds, another for trading, and a third for trading and withdrawing funds. This multi-layered access structure significantly enhances the security of the trading platform.

GRVT Fundraising Journey

GRVT has successfully navigated multiple fundraising rounds to support its mission of creating a hybrid crypto exchange. Since its inception, GRVT has raised a total of $9.3 million across three funding rounds. These funds have been instrumental in developing the platform, enhancing its features, and expanding its market presence.

Key Investors and Funding Milestones

GRVT’s fundraising journey began with a pre-seed round in October 2022, raising $2.1 million. This round was backed by investors including 500 Startups and Folius Ventures. The seed round followed in September 2023, raising an additional $5 million. This round was co-led by Matrix Partners and Delphi Digital, with participation from Susquehanna Investment Group, CMS Holdings, ABCDE, Hack VC, and Matter Labs.

In March 2024, GRVT secured $2.2 million in a Series A round, bringing the total funding to $9.3 million. Key investors in this round included QCP Capital, Selini Capital, Antelope, Pulsar Trading, and Ampersan. These strategic investments have provided GRVT the resources needed to continue its growth and innovation.

Conclusion

GRVT is setting a new standard in crypto trading by merging the best of centralized and decentralized exchanges. With its hybrid model, GRVT offers high liquidity, fast transactions, and robust security, all while ensuring users retain full control over their assets.

Backed by a strong team and significant investor support, GRVT is poised for continued growth and innovation. Its comprehensive product range and user-friendly features make it a standout in the crypto trading landscape, setting a new standard for efficiency and security. As GRVT expands its reach, it is well-positioned to lead the future of crypto trading.