Crypto trading often feels like a dilemma. On the one hand, Centralised exchanges (CEXs) make trading intuitive but require traders to relinquish control of their assets.
After high-profile collapses like FTX, many traders are understandably wary of trusting such platforms.
On the other hand, decentralised exchanges (DEXs) empower users with control but are often daunting due to complex interfaces and costly gas fees.
GRVT, pronounced "Gravity," offers a solution. By combining the user-friendly experience of CEXs with the self-custody and transparency of DEXs, it creates a hybrid exchange that simplifies trading without compromising autonomy.
In this article, we will talk about what it is, and how users can utilise it for a smooth trading experience, while also chasing rewards.
What is GRVT?
GRVT is a hybrid exchange designed to merge the best aspects of centralised and decentralised trading platforms.
It offers the simplicity and accessibility of a CEX while ensuring users maintain full custody of their assets, as seen in DEXs. Through blockchain-based smart contracts, GRVT eliminates the need for intermediaries, granting users both security and autonomy.
Launched in public beta on August 5, 2024, GRVT has already demonstrated remarkable success. It is now closing in on its public beta phase and is moving into its mainnet, according to its latest announcement.
The leadership team behind GRVT is equally impressive. Hong Yea, the CEO, has nearly a decade of trading experience from Credit Suisse and Goldman Sachs, with a vision to simplify crypto trading.
Matthew Quek, the COO, brings experience from DBS Singapore, where he led blockchain initiatives in traditional finance.
Aaron Ong, the CTO, previously worked at Meta, where he specialised in data privacy and system scalability. Together, they’ve built a platform that’s not only functional but also secure and user-focused.
How Does the Infrastructure Come Together?
GRVT’s infrastructure is a hybrid model that balances off-chain performance with on-chain transparency. This architecture allows the platform to scale efficiently while maintaining decentralisation.
Off-Chain Operations
To maximise performance, GRVT processes non-critical actions off-chain, ensuring low latency and high throughput:
- Order Matching: Trades are matched off-chain to reduce execution times before results are forwarded to the blockchain for settlement.
- Risk Assessment: Liquidation events are identified off-chain and validated on-chain to ensure they meet smart contract rules.
- Account Management: Tasks like account creation and wallet additions occur off-chain but are synced with the blockchain when necessary.
- Fund Transfers: Transfers between accounts or wallets are processed off-chain for speed, with final settlements recorded on-chain.
On-Chain Operations
Key operations impacting user funds are validated on-chain using ZKsync’s zero-knowledge proofs (ZKPs). These include:
- Trade Settlement: Matched orders are immutably recorded on the blockchain.
- Fund Transfers: All internal and external transactions are securely finalised on-chain.
- Risk Validation: Liquidations are verified for compliance with pre-set rules.
GRVT utilises ZKsync’s validium technology, which underpins the whole infrastructure. This layer-two solution enables the platform to scale transactions efficiently while maintaining the transparency and security of Ethereum.
A standout feature is ZKsync’s paymaster system, which allows GRVT to sponsor gas fees on behalf of users, creating a truly gasless trading experience.
To ensure accurate pricing, GRVT integrates with BlockScholes, which is a real-time data provider. This ensures data is delivered in real-time, sourced from institutional contributors, ensuring trades are executed at fair and reliable prices.
This is particularly vital for GRVT’s spot and perpetual markets, where even minor price discrepancies can affect outcomes significantly.
Gasless Trading Mechanism
One of GRVT’s most innovative features is its gasless trading model, designed to eliminate Ethereum gas fees for users. By utilising ZKsync’s paymaster functionality, GRVT ensures that transactions are seamless, making it more accessible to both beginners and experienced traders.
The paymaster system allows GRVT to cover gas fees for its users. This means traders don’t need to hold ETH in their wallets for transactions, lowering barriers to entry. While gas fees are absorbed, users still pay transaction fees, which are transparent and designed to sustain platform operations.
Fee Structure
GRVT employs a tiered fee model to maintain fairness and transparency:
1. Trading Fees:
Trading fees depend on whether the user is a maker or a taker:
- Makers: Users providing liquidity benefit from lower fees.
- Takers: Users consuming liquidity through market orders pay slightly higher fees. The formula for calculating trading fees is: “Trading Fee = Position Size × Trade Price × Fee Percentage (Maker or Taker)”
2. Withdrawal Fees:
A flat fee is applied to withdrawals, covering on-chain transaction costs. For example, users might pay 25 USDT, with the fee dynamically adjusted based on Ethereum network conditions.
3. Liquidation Fees:
In the event of forced liquidation, a fee is applied to the liquidated amount:
“Liquidation Fee = Position Size × Liquidation Price × 0.9%”
This structure ensures the platform remains user-friendly while encouraging responsible trading behaviour.
Reward Programs
GRVT incentivises users through its innovative reward programs, fostering engagement and activity across the platform.
GRVT Reward Program
The GRVT Reward Program allocates 11% of the platform’s total token supply to reward users through three categories:
- Ecosystem Reward: Users earn points for referrals and participation in campaigns. Direct referrals earn 10 points, while indirect referrals earn 2 points.
- Trader Reward: Active traders are rewarded based on their trading volume.
- Liquidity Provider Reward: Users who provide liquidity to trading pairs receive additional incentives.
ZKsync Reward Program
Focused on platform interaction, this program rewards users with $ZK tokens for engaging with GRVT and ZKsync infrastructure.
- KYC Verification: Required for eligibility.
- Epoch Rewards: Rewards are distributed for deposits and trading activity.
- Mystery Box Incentives: Additional rewards unlocked based on activity points.
Achievements and Funding
Despite being in beta, GRVT has already reached significant milestones. The platform raised $9.3 million through two funding rounds:
- $7.1 million in September 2023
- $2.2 million in March 2024
By September 2024, GRVT had partnered with 16 market makers, securing a $3.3 billion monthly trading volume commitment (source). The platform’s 2.5 million-user waitlist is another testament to its popularity.
In November 2024, GRVT launched an upgraded reward portal, making it easier for users to track and claim their rewards.
Conclusion
GRVT bridges the gap between CEXs and DEXs by offering a seamless, gasless, and secure trading experience. Its hybrid infrastructure, comprehensive rewards, and transparent fee structure make it an appealing choice for traders of all experience levels.
While still in its beta phase, GRVT has already proven its potential to make crypto trading more efficient, combining accessibility with the autonomy that traders demand.
