QASH Global liquidity for the cryptoasset market

Quoine plans to develop a universal liquidity solution for cryptoasset trading along with a suite of associated services, referred to as the Worldbook and Prime Brokerage, using the Qash (QASH) token.

Background

Qash is the native token for a large suite of products that Quoine is hoping to develop. Quoine is a licensed crypto exchange based in Japan with operations dating back to 2014. The team developed QASH in attempt to increase liquidity in the token markets and create a more institutional focused platform. Quoine believes that their token can build a global network of liquidity by acting as a base asset and incentivizing external exchanges to participate by rewarding them with QASH. The token will also be used to pay for various services on the platform.

Quoine describes its target market for this product as “underserved markets”; small markets that in isolation are not yet big enough to support a liquid token. Using the platform’s Worldbook system, small exchanges can place an order which will then be exchanged and transferred across QUOINE’s network of order books. This will provide access to tokens that would previously have been unavailable to clients of small institutions due to capital requirements. In a sense, it functions as a cross-exchange exchange, in a similar way to how Polkadot is looking to be a cross-blockchain exchange.

A larger suite of financial products will be built through the Prime Brokerage, which will provide ancillary services to institutions. This platform is purported to provide value to users by reducing counterparty risk, increasing capital efficiency, and netting token positions. The exchange will assume all counterparty risk on the part of consumers, and the liquid platform will reduce fees and improve capital efficiency by allowing instant trade among parties. The alternative would be a roundabout process requiring multiple trades. This brokerage will also include direct market access to various exchanges and fiat money management for customers looking to make their first investments. In total, Quoine is looking to create a comprehensive suite of cryptocurrency financial services that will ultimately drive usage of its QASH token.

Technology

The Worldbook as developed by Quoine is made of a combination of three major technologies, the matching engine (ME), the cross currency conversion engine (CCCE), and smart order routing (SOR). These technologies work in unison to provide the architecture of the liquidity solution that Quoine is developing, and each is currently in use through the services that have already launched.

The ME supports core functions of the Qryptos exchange that and was developed to support traditional finance levels of exchange. The team claims that the ME can support several millions of transactions per second which would make it one of the most advanced matching engines in the industry. This engine supports many of the typical architectural interfaces you would find in web development, including a Rest API and WebSocket, but also finance specific interfaces such as the FIX API. They institute each exchange as a separate state machine that acts independently and completes orders through the order matching process.

The CCCE is a mechanism for allowing the near-instant and automated conversion of different types of currency. This is possible even if the bid and ask orders do not match currency types, as well as across fiat currency and tokens. In the event that the fiat currencies requested differ a standard foreign exchange rate is used to equate value, and in the event that the tokens requested differ a cryptocurrency conversion rate is applied. In this respect, the CCCE functions as a comprehensive foreign exchange platform in which value can be transferred between traders quickly and seamlessly without a specific liquidity silo preventing exchange from occurring.

Finally, SOR is designed to maintain low-latency and real-time feeds for all major exchanges throughout the world. When an order is placed into the Worldbook and it cannot be filled internally by the Qryptos exchange, it is then sent out to all other exchanges hooked into the Worldbook system. It does this by not only checking for perfect matches but also for FX matches that can be completed using the CCCE.

The combination of these three technologies focus on maintaining a pool of liquidity that manages both fiat and cryptocurrencies efficiently across a global orderbook.