🧐 Exploring the characteristics that the new generation of compliant exchanges should possess—— In the context of a downturn in the market, CEX Wealth Management's earnings are now decreasing, But until a few days ago, I saw that @ Backpack's USDC has been maintaining an APY of over 10% and has a decent yield, After researching it, I did a rough study before saving it. I thought Backpack had faded out of sight, but upon closer inspection, I found something different; The current BP, which we call the 'New BP', aims to create a new generation of compliant centralized exchanges (CEX) that provide users with a professional and secure trading experience while ensuring compliance. How to understand this concept? After the Binance penalty incident, most people mentioned the compliance of the exchange, so compliance is the first and foremost element; Secondly, the previous impression of FTX was that it was very user-friendly, specifically designed for traders as CEX. This indicates that the current CEX still has an evolutionary perspective, so I believe that the new generation of compliant exchanges needs to have the following: 1) Transaction convenience The core team members of Backpack, including Armani and Can, are all from FTX, Alameda Research, and Solana Foundation. This team not only inherits FTX's strong genes in the cryptocurrency market, but also performs well in product launches—— In traditional financial markets, derivative trading such as forex, gold, and commodity futures has long been a common tool for professional investors. However, in the field of cryptocurrency, due to the lack of transparency in the industry, contract trading is often misunderstood or even "demonized". BP is committed to becoming a new generation of compliant centralized exchanges (CEX), providing users with a professional and secure trading experience while ensuring compliance, and making these features more effective through security and convenience; It is reported that BP has launched innovative features such as interest bearing contracts and automatic lending, specifically designed for professional traders, providing opportunities for arbitrage, high-frequency trading, and roll over trading. In addition, BP improves the efficiency of loan utilization through algorithm optimization, providing users with higher annualized yield (APY). The platform does not rely on intervening in trading to obtain profits, but through technological innovation, has launched functions such as interest bearing contracts and automatic lending, designed specifically for professional traders, providing opportunities for arbitrage, high-frequency trading, and roll over trading. The BP stablecoin mentioned earlier has maintained an APY of over 10%, which is the result of this algorithm; 2) Compliance; BP has currently obtained licenses in Japan, Dubai, and the European Union; As we all know, the Japanese market is closing down several well-known exchanges, and BP may obtain more licenses in the future to further expand its compliance business. In addition, it is reported that Backpack has made great efforts to obtain this European contract license. The contract is said to be very secure and has a complete set of algorithm support; Due to the implementation of the EU's Crypto Asset Market Regulation (MiCA) and stricter legal enforcement, multiple unlicensed offshore trading platforms have been forced to shut down their derivative businesses in Europe. Backpack has become the only operating entity in the European Union that holds qualifications for encrypted derivative services, including perpetual contracts. As a developed economy, the trading volume in the EU region can account for 20-30% of the global business volume of various cryptocurrency trading platforms. The licenses obtained by Backpack EU are similar to those held by traditional financial institutions in Europe, and in the future, they will be able to provide more traditional financial services in Europe, including stocks and bonds. （From ： https://www.theblockbeats.info/flash/277038 ） 3) Asset security; Compliance is the first guarantee of security, and the second guarantee is actually to prevent certain things from happening through the wallet port; Founder Armani once mentioned that BP is about to launch a user abstract self custodial wallet, which means that users can directly control the wallet without the need for the platform to master KYC information, without the need for a private key. I don't know when this attempt will be launched, but it should be imperative; So actually, looking at it, I think we shouldn't demonize derivative trading. Derivative trading platforms have their own ecological niche, and if BP can seize this position, I think it's a great attempt!