Any2Any Quantum Trading Core — a technology for trading in any direction

The first exchange appeared in 1409 in the Belgian city of Bruges. There, brokers recorded trading orders in ledgers, and traders received goods or money. Over six centuries, humanity has moved from copper coins to cashless settlements, but trading still relies on order books and the quote currency [simple_tooltip content=”currency in which the price of the trading pair is expressed. In the BTC/USDT pair, the quote currency is USDT”] quote currency [/simple_tooltip].

The cryptocurrency exchange 50x.com has developed the Any2Any trading core, which enables trading of any cryptocurrencies without fixed trading pairs. We explain the exchange and compare Any2Any with the traditional trading core.

Development history of Any2Any

The founder of the exchange 50x.com, Nikolai Price, became interested in cryptocurrency in 2013. For some time he engaged in cryptocurrency arbitrage using bots. Bots bought one pair on a “cheap” exchange and immediately sold it on a “expensive” one.

Nikolai wondered how to improve crypto trading, and in 2017 he arrived at the idea of Any2Any — a technology that allows trading any asset on an exchange against any other. In 2018 the team launched the 50x.com exchange with the Any2Any quantum trading core technology.

Since 2019 the exchange has used the final version of the Any2Any core. At present, 50x.com lists 36 assets in 1,260 trading pairs. According to the creator, the technical capabilities of Any2Any allow trading hundreds of assets in hundreds of thousands of trading pairs.

How it works: comparison of the classical trading core and Any2Any

A trading core is the program that executes users' trades. The database server sorts limit orders and records them in tables—the order books. In a classic trading core, the order books for trading pairs are not interconnected.

In the Any2Any trading core, traders' orders are gathered into a single graph. In mathematics, a graph is a set of vertices connected by edges. Any2Any links orders across all assets into a stable market graph. In a stable market graph, the liquidity vectors (order volumes) are balanced.

The vertices of the Any2Any graph are all the trading orders on 50x.com. A new trading order adds a new liquidity vector to the graph, which can disrupt the graph's stability.

The Any2Any quantum trading core analyzes the current state of the graph and determines which vectors must be removed to balance the market graph. From these vectors the core forms the closing graph — the trading quantum. It then removes the quantum vertices from the overall market graph and reorders the remaining vectors, which again brings the market graph to a stable state.

The take-order is executed with regard to all available liquidity for the currency of the trade, and the trader receives the cryptocurrency at the most favourable rate. At the same time, they pay no additional commission for executing orders from the trading quantum. Other traders whose orders were part of the quantum also receive execution of their orders.

“All available liquidity within the 50x.com trading core is in a state of ‘superposition’: it is not known which future market trades will draw on it. When a trading order enters the market graph and disrupts the graph's stability, the superposition collapses into the final trade graph. The final trade graph is subtracted from the market graph by a single quantum,” — Nikolai Price, founder of 50x.com

Example: you buy BTC with USDT. A normal exchange would execute the BTC/USDT trade about 3% above the market price. The Any2Any core finds such a graph of orders so that you end up receiving bitcoin about 1% above the market price.

Advantages of Any2Any in trading

Any2Any and the classic trading core perform the same task: swapping one asset for another. Yet the Any2Any technology gives traders a number of advantages:

• High liquidity. The 50x.com trading core accounts for liquidity across all trading pairs, so traders’ trades are executed at the best price;
• Low volatility. High liquidity reduces noise on the graph;
• Low commissions. Traders pay no double commission when exchanging cryptocurrencies. The exchange’s fee per trade is 0.1–0.2%, regardless of how many other traders’ orders contributed to the execution;
• Real price discovery. Classic core charts show the price of a market segment — the trading pair. The Any2Any technology displays the real market prices of cryptocurrencies relative to each other.

Charts on 50x.com have a peculiarity: the price chart shows the actual price change taking into account all other trades on the exchange, but displays volumes only for this trading pair. This means some charts appear to show price moves without activity in that pair.

Example: due to DOGE and USDT trades, the DOGE/USDT rate changed. Yet the DOGE/USDT chart displayed volumes only for that pair, not the actual volumes that caused the price move. This can give the impression that the pair’s price is moving without activity.

Conclusions

According to the creator, Any2Any is a technology with no equivalents yet. It is currently represented only on the 50x.com exchange.

The Any2Any trading core enables trades at the best price, taking into account all liquidity available on the exchange. Traders can also trade any cryptocurrency for any other and adjust their portfolio composition without additional fees for operations with the quote asset.

The technology can be used in futures trading, securities and fiat currencies. It could reduce market noise on trading venues and curb opportunities for price manipulation.

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