Traditional exchanges execute trades instantaneously. Instant execution rewards traders who can get slightly faster access to information or who can trade faster than others.

This creates higher costs for everyone else, and even regulation and oversight hasn’t been able to stop it. 

In fact, this is a $34 billion problem.
Today, retail investors in the U.S. lose $34 billion per year on bad trade execution.

On Krypton, trades are executed as flows over time.

Here's a helpful analogy

There are two ways for me to sell you this bottle of water.

What does that mean?

I can sell you the bottle with the water in it.

For example, if I only have 3 milliseconds to profit off an information advantage, I'll need to pour really fast.

Then, you can say,

Or, I can pour the water from the bottle into your glass.

In this approach, we have to share how fast we want the water to be poured. We also get a chance to react to other people's pouring preferences.

“Wait, hang on, why do you want to get rid of the water so fast? WHAT DO YOU KNOW THAT I DON’T?

At that high speed, I'm only willing to pay a lower price."

That takes care of our short-term arbitrageurs, but there’s another component that also takes care of the front-running problem that you see everywhere in finance, not just DeFi. 

On Krypton, all trades in the same block are considered part of a single “batch”. This eliminates the ability for anyone to reorder transactions in a block to their own advantage–which in turn eliminates front-running and sandwich attacks. 

The Krypton approach could work just as easily in other contexts–such as centralized exchanges, with traditional assets, or even in private trading consortiums.

 But we wanted it to be accessible to all, and so we built it here.

© Krypton Labs, Inc. 2024. All Rights Reserved.

Krypton Labs, Inc. 

The Next Generation of Markets