Abstract

Cypher is a cross-margin decentralized exchange on the Solana blockchain.

The protocol offers margined spot and derivatives markets as well as borrowing and lending primitives within the platform.

The margined spot markets offering includes all markets on OpenBook V2 and Phoenix for which Cypher has lending pools available for both the base and quote token.

The derivatives markets offering is built on top of the Asset Agnostic Orderbook which was initially built by Bonfida and has been improved by the Cypher team.

Using a single margin account, Cypher allows users to hold positions of different types and across different assets, ranging from majors (BTC) to ecosystem tokens (ORCA), as an asset being lent or a derivative position used for hedging or directional exposure, as well perform margined swaps using Jupiter.

With Cypher's peer-to-peer margining system, the protocol will mimic certain mechanisms from traditional finance enabling traders to have long, short, and levered positions. Margin trading can be collateralized by any asset that has a non-zero asset weight and derivatives markets can be quoted in different assets and feature different types of settlement.