What is Brine Finance? Brine Finance is a new generation Trading platform, combining the advantages of CEX and DEX to bring the most optimal products to users. The project also receives support from Starkware and investment funds such as Pentera and Spartan.
So what is Brine Finance? Let’s find out more details about the project in this article!
To understand more about Brine Finance, you can read the following articles:
- What is StarkEx? StarkEx Cryptocurrency Overview
- What is StarkWare? Overview of the Group Valued at $8 Billion
What is Brine Finance?
Overview of Brine Finance
Brine Finance is a DEX product with all the features of a CEX such as supporting placing Limit orders, Stop-Limit, Trailing-Stop-Limit and OCO. Brine is built using Starkware’s StarkEx technology, which in the future will become an Appchain of Starknet.
Brine Finance uses Orderbook to support placing orders and reporting user orders. Traders’ orders will be aggregated into batches and processed Offchain with STARK proof, so there will be no gas fees for transactions. Traders only pay 0.1% fees for trading orders, which is the protocol’s fee.
Bine is completely like a CEX because users just deposit money and trade without signing orders or paying gas fees. Orderbook structure and intuitive interface along with protocol promotion order features make the project the most user-friendly.
In the future, Brine will become a dApp that supports Trading for many assets. The project allows users to deposit any asset or network to trade large capitalization assets in the Crypto market. The project is solving a huge problem that is liquidity fragmentation in the DeFi market.
Highlights of Brine Finance
- DEX supports all types of orders like no other CEX.
- The interface is very intuitive and user-friendly, especially for users who often use CEX.
- Secure user information and identity thanks to Starkware’s zkSTARK technology.
- The speed of transactions and order matching is very fast thanks to Offchain processing.
- Transactions do not require signing orders and paying gas fees.
- Funds can be transferred easily between different EVM chains and L2s in the market with the help of advanced APIs.
- Using a common order book for an asset class helps solve the problem of market liquidity fragmentation.
Mechanism of action
Brine’s operating mechanism can be specified as follows: Trading orders that users interact with Brine will be aggregated into batches and processed on StarkEx’s basis. The STARK proof will then be validated and transferred to consensus on Ethereum.
Brine trading orders are processed and stored Offchain by StarkEx. When interacting with Brine, users will be given a wallet address to store assets and data from Metamask and Email addresses.
Implementation process
- Users deposit funds by interacting with contracts on Brine.
- Once there are enough confirmations, the funds will be transferred to the Brine wallet.
- Whenever a user creates an order, the user signs the order with his/her Brine Key with all the necessary parameters.
- When Brine finds a matching order, it matches the order, and it is then sent to the batch processor.
- As explained above, the batch processor sends the batches to SHARP, which then sends the batch to the STARK verifier for verification, and is finally pushed to L1 as a status update updating the balance of the matching wallet. copper.
- Users can withdraw funds directly through the smart contract or by sending a request to Brine, allowing users to withdraw funds with low gas fees.
Brine components used by Starkware
- Gateway: Receive transactions from customer exchange orders and store them in the transaction stream. It also performs validation of context-free transactions (e.g., checking request format and value range).
- Batching and Validation: Responsible for bundling transactions together and ensuring the validity of each transaction execution.
- Batches Info: Provides information about system-generated plots to external Spectators.
- Changes Approval Gateway: A mechanism that allows the use of custom off-chain logic to approve bulk submissions. An approving party needs to present a batch approval signature, and batch submission is only allowed if a quorum from a predetermined committee has approved the batch.
- Proving: Responsible for creating proof of state transition (through an external proof service) and ensuring the corresponding information is registered on the information registry Verifier on chain.
- Packing: Responsible for sending transmitted packets to the blockchain. The packets contain the recipient’s Ethereum address and the payload will be sent there. Packets are transmitted through a stream, and their order in the stream determines the order in which they will be transmitted on the blockchain.
- Blockchain Writer: Wrap packets with network-related data (i.e. add gas price, nonce, signature,…) and transmit the transaction to the blockchain. It ensures transactions are mined and includes a custom mechanism to increase gas prices if needed.
- Catcher: Monitor the blockchain and report rollbacks to the processor.
Brine consists of two components: Onchain and Offchain
Offchain
- Wallet-based data storage
- Stores the current status of orders and transactions
- Create batches for transactions
- Send status updates to scalable engines like L2
Onchain
- Keep state commits and system assets
- On-chain account management (All balance instructions arrive as L1 transactions)
- Responsible for enforcing state transition validity
All transactions including deposits, orders, trades, withdrawals, transfers, stake claims are aggregated and stored on an off-chain state system managed by Brine (Brine has no authority access to the user’s key). All transactions before being sent are signed by the user’s Brine private key.
SHARP at programmed intervals sends STARK evidence to STARK VERIFIER for verification. The service will then send an on-chain state update transaction to the Brine contract in L1, which will only be accepted if the verifier finds the proof valid.
SHARP is mA shared proof service for Cairo programs. It receives proof requests from different applications and produces proofs to attest to the validity of the Cairo authentications. Output evidence can be shared among multiple evidence requests.
order matching
As shown above, Nora wants to trade 1 ETH for 2000 USDC and Bob wants to trade 2000 USDC for 1 ETH. Both import limit orders using Brine with the API tool. Brine matches Nora and Levi’s limit orders and sends the transaction requesting settlement to the Starkware gateway.
Starkware checks the following to authenticate the resolution request:
- Id of the contents of two matching orders.
- The ratio between the sales quantity and the purchase quantity is consistent with the ratio that each party has signed. Both Nora and Levi want to trade at a ratio of 1 ETH per 2000 USDC.
- Each order in the settlement request is signed by the Stark key corresponding to the order’s vault id.
- The balance in each vault id is enough to make the transaction.
- The maximum fee that both parties are willing to pay for the transaction is not lower than the actual fee.
- No orders were placed and the amount transacted did not cause Nora or Levi to transfer more than the amount they signed on the order for.
- The settlement request has not expired.
Development Roadmap
Update…
Core Team
Shaaran Lakshminarayanan: Founder
- In 2021, Shaaran graduated with a Bachelor’s degree from Vellore Institute of Technology.
- In 2018, Shaaran worked as a Machine Learning Facilitator at Google.
- In 2019, he worked as Chief Technology Officer at Celebrify.
- Currently, Shaaran is Founder of Krypto and Founder of Brine Finance.
Ritumbhara Bhatnagar: Co-Founder
- Ritumbhara graduated with a bachelor of technology-BTech with a major in information security from Vellore Institute of Technology.
- In 2020, Ritumbhara participated in founding the Krypto trading platform, a centralized trading platform in India.
- Currently, Ritumbhara is Co-Founder and CDO at Brine Finance.
Investors
Brine Finance receives great support from Starware and investment funds such as Pantera, Spartan,…
Tokenomics
Update…
Exchanges
Update…
Information Channel of Brine Finance
- Website: https://www.brine.fi/
- Twitter: https://twitter.com/BrineFinance
- Discord:
Summary
Brine Finance is the DEX project with the most user-friendly CEX interface and products. The project was developed by the team who are the founders of the Krypto exchange in India. The project brings very convenient products, but Order’s problem is still liquidity. Brine needs to reach a lot of users and market makers to get a lot of liquidity.
The current Orderbook also only focuses on assets with large capitalization and many traders. As for new assets or low capitalization, it will be difficult to bring high trading efficiency on Brine.
So I have clarified what Brine Finance is? Hope this article brings you a lot of useful information and knowledge.