BBOD: First Zero-Fee Crypto Derivatives Exchange.

6 min readNov 26, 2019

What is BBOD ?

BBOD is the non-custodial, zero-fee cryptocurrency derivatives trading platform, providing a secure & transparent marketplace to trade Bitcoin & wide range of Altcoins futures contracts with TUSD-stablecoin collateral. BBOD is offering the fastest and the most reliable, high performance multi-asset matching engine in the cryptocurrency industry. BBOD partners with one of the BEST electronic exchange operators worldwide — GMEX Group, who has developed and will host and manage the state of the art low latency, high-throughput matching engine exclusively for BBOD. BBOD is progressing one step ahead of it’s plans as the BBOD trading platform is already live and onboarding new clients. BBOD is opened for business in October 2019 and already list 17 perpetual futures contracts. BBOD goal is to grow to the level of Huobi and Bitmex in no time.

The issues in the current crypto-exchanges.

Crypto exchange hacks and lack of transparency

Exchanges are at the major risk of hacks. More than $1.6 Billion USD has been stolen from crypto exchanges during the period of 2011–2019. To counter this, crypto exchanges have used various techniques but proved unsuccessful..One of the biggest problems with cryptocurrency exchanges is transparency. Transparency requires evidence of solvency, which is significant because investors want to know that exchange may meet all withdrawal requests. In simple words, an exchange needs to prove its assets equal liabilities.

Expensive trading for active traders

The drawback for high-frequency traders in trading Bitcoin and alts is the high transaction fees. Most active traders suffers from high-frequency trades because of high transaction fees and exchange earns more money from these users than it does from the regular, mid or long-term investors.

Not much marketplaces to trade smaller coins with leverage

There are not many options available where individual can trade a wide range of altcoins with high leverage. Bitfinex offers alts on spot margin market but limits leverage to 3.3x. At the moment, the most diverse crypto derivatives market is the FTX with perpetual contracts on 25 underlying assets.

Separate margin wallets

Collateral is needed to be posted separately for different coins. BTC for BTC/USD futures, ETH for ETH/USD futures. This requires traders to hold separate margin wallets for each trading pair which is problematic to operate and results in the invested capital fragmentation across many distinct coins and margin wallets.

BBOD providing solutions of all issues.

Non-custodial accounts

At BBOD, custody of cryptocurrencies is completely separate from exchange. BBOD platform does not hold private keys to the client’s assets, instead each client holds their assets in a decentralized smart contract account. No private keys are created therefore the keys can not be lost or stolen by hackers.
In existing exchanges like (Bitmex, FTX, Bybit), the owners of the exchanges have full control and responsibility to keep the coins safe. The clients hold private keys to their coins.

Transparency

This following design makes BBOD to prove it’s solvency and proof of reserves audits using solely publicly available data.

All user balances are updated on daily basis and visible on the Ethereum blockchain which means a user’s off-chain balance matches the on-chain balance everyday (an ethereum contract account) and
● Total funds at the exchange as a sum of all user balances
● Number of users registered as a number of contract accounts created
● Amount of funds settled on the blockchain daily

Zero-fee leveraged trading

BBOD will be the first Zero-Fee Crypto Futures trading venue. There will be no transaction fees on the BBD-settled futures markets (eg. BTC/BBD or ETH/BBD perpetual contract). Traders will need to use BBD token as a collateral.

Advanced technology to offer leveraged altcoins trading

Due to low volume and high volatility of the smallest coins, an exchange is imposed on frequent and unpredictable liquidations. BBOD has used proprietary smoothing technique in index calculation which reduces abnormal price speculations related to liquidity drainage. BBOD’s sophisticated index calculation algorithm will allow the most diverse, liquid and reliable marketplace to trade micro/small/mid-cap altcoins with high leverage, with the aim to list perpetual futures contracts on +50 cryptocurrencies by Q2/2020 and +100 by Q4/2020.

USD-based stablecoin settlement

BBOD futures contracts are settled in USD-based collateral (currently TUSD). This means that profits, losses, account balances and margin requirements are denominated in the stable cryptocurrency. All the underlying assets may be traded using one universal collateral.

BBOD’s Contribution to the Environment

The BBOD Team believes in making the world a better place through business and their profits. BBOD has decided to donate up to 15% of our all trading fees to selected foundations, and you, as a BBOD trader will automatically participate in the contribution just by trading on BBOD platform. In the beginning BBOD would like to support two foundations; Plant-for-the-Planet and One Humanity Care.

BBOD Trading Features

Spot / Futures markets

BBOD offers:
● perpetual futures markets TUSD-settled, eg. BTC/TUSD.
● perpetual futures markets BBD-settled, eg. BTC/BBD (to be launched on December 10 2019)
● spot markets BBD/TUSD, BBD/ETH, ETH/TUSD (to be launched on December 10 2019)
● fixed-date futures markets (to be launched on Q2/2020)

Multi Assets Platform

BBOD will list both crypto futures and traditional equity, fixed income, commodity and currency futures. In the first stage BBOD will list the following perpetual contracts on 17 cryptocurrencies: Bitcoin, Ethereum, Ripple, EOS, NEO, Tron, Binance, Litecoin, Stellar, Cardano, IOTA, Monero, NEM, ICON, Elastos, Decred, Digibyte, all contracts vs. TUSD.

Platforms and Connectivity

BBOD offer a mobile “responsive” web App currently. In the next stage BBOD will offer native Android App and native iOS App in Q2/2020. REST and WebSocket APIs will be offered in Q1/2020.

Preview of the platform UI

Competition

Below is an overview of top derivatives exchanges features:

BBD Token Overview

BBD is the exchange token of BBOD. BBD is an ERC20 token. BBD tokens will be listed on BBOD on 10th December 2019.
● Total supply: 117,399,409 BBD (341 addresses)
● Max. supply: 275,803,582 BBD (356 addresses)

Below is an overview of top exchange platform tokens:

BBD utility

● Collateral: BBD is used as collateral for margined positions on the BBD-settled futures market (eg. BTC/BBD perpetual contract.) This increases utility and demand for BBD.
● Zero-Fee trading: There are no transaction fees (zero) on the BBD-settled futures markets (eg. BTC/BBD perpetual contract).
● Fee Discounts: Users pay reduced trading fees on the TUSD-settled futures market based on their BBD balance and daily trading volume. Staking tokens slows down the velocity of the coin and increases its value.

The table below presents trading fees comparisons for Bitcoin/USD contract across top derivatives exchanges

BBD Pre-listing Token Offering

The offering details

BBOD decided to offer 8 mln tokens with discount for the public sale ahead of the first listing. This non-dilutive secondary offering does not dilute tokens held by existing token holders because no new tokens are created.