Behind the Scenes: A Comprehensive Technical Exploration of CryptoYou

The world of decentralized finance (DeFi) has seen unprecedented growth and innovation, with CryptoYou emerging as a new player in cross-chain swapping solutions. By building on the Yanda protocol, CryptoYou has successfully bridged the gap between centralized finance (CeFi) and DeFi, creating a secure, transparent, and efficient swapping experience for users. In this blog post, we will provide a comprehensive technical exploration of the collaboration between CryptoYou and the Yanda protocol, including detailed explanations of the user experience, benefits, and future developments.

The Yanda Protocol: A Hybrid Finance Solution

The Yanda protocol is a Hybrid Finance solution designed to bridge the divide between CeFi and DeFi. It aims to connect centralized exchanges (CEXs) to the decentralized ecosystem, unlocking the vast liquidity present in centralized platforms for the benefit of DeFi users. By doing so, Yanda is revolutionizing the DeFi space by making trading via CEXs more transparent and accessible through web3 wallets, ensuring that the custody of cryptocurrencies remains the responsibility of the asset owners.

Yanda is a DeFi protocol that uses off-chain components to access centralized exchanges’ liquidity.

Current DeFi protocols like DEXs, Bridges, or Cross-chain Swappers, are already linked with off-chain components – sometimes centralized, and sometimes distributed – in such a way that doesn’t justify their claim to be 100% decentralised protocol.

Considering the impact of centralised exchanges on the crypto industry, which as of November 2022 is over 90% of the total market volumes, the exclusion of CEXs’ liquidity from decentralized protocols seems not only unjustified, but also dangerous.

Accessing CEXs’ liquidity by keeping self-custody over funds not only provides a more democratic way of creating markets via the canonical order books, but also provides a highly compliant infrastructure that can scale globally with respect to cryptocurrency users and to all local regulations.

Yanda is born with the idea of making trading via CEXs more transparent and accessible via web3 wallets, keeping the custody of the cryptocurrencies as a responsibility for the owner of the assets. The use-cases deriving from connecting CEXs to DeFi are high in number and can revolutionize the entire cryptocurrency industry to make it more accessible, secure, and compliant.

Examples of use-cases that can thrive on Yanda are (but are not limited to) cross-chain swappers, network bridges, hybrid market pairs, on/off ramp solutions, stablecoin minting, etc.

The parties involved with the protocol are:

– DeFi users that want to keep custody over their funds

– Brokers of centralised exchanges (CryptoYou)

– Centralised Exchanges (CEXs)

– Validators / nodes

– Layer 1 networks (Ethereum, Moonbeam, Celo, etc.)

The Collaboration between CryptoYou and Yanda Protocol

CryptoYou leverages the Yanda protocol to provide users with several key benefits, including deep liquidity, low fees, and self-custody of funds. The Yanda protocol’s validators play a crucial role in ensuring the security and transparency of off-chain logic and transactions, creating a more secure environment than traditional bridges.

The collaboration between CryptoYou and the Yanda protocol involves a series of carefully orchestrated steps, beginning with KYC verification. Brokers like CryptoYou share users’ verification outcomes with Yanda validators, ensuring that only verified users can interact with the smart contract. Once the KYC process is complete, users can connect their web3 wallets (e.g., MetaMask) to CryptoYou and begin the swapping process.

When users confirm a swap, they interact with the Yanda smart contract through their web3 wallets. The smart contract then deducts the protocol fee and sends the remaining funds to CryptoYou, which subsequently executes the swap on a centralized exchange. The use of CEXs allows CryptoYou to access deep liquidity pools, ensuring efficient and seamless cross-chain swaps.

Once the swap is completed, Yanda validators verify the legitimacy of CryptoYou’s operations and ensure compliance with the protocol’s logic. Finally, the swapped tokens are transferred back to the user’s web3 wallet, maintaining the user’s custody of their funds.

User Experience: A Step-by-Step Walkthrough

To help you understand the CryptoYou and Yanda collaboration, we’ll guide you through a step-by-step walkthrough of the user experience:

1. KYC Verification: CryptoYou shares users’ verification outcomes with Yanda validators to ensure only verified users interact with the smart contract.
2. Wallet Connection: Users connect their web3 wallet (e.g., MetaMask) to CryptoYou.
3. Token Selection: Users choose the tokens they want to swap and the desired amount.
4. Smart Contract Interaction: Users confirm the swap and interact with the Yanda smart contract through their web3 wallet.
5. Transaction and Verification: Users send funds to the Yanda smart contract, which deducts the protocol fee and forwards the remaining funds to CryptoYou.
6. Swap Execution: CryptoYou executes the swap on a centralized exchange, leveraging its deep liquidity.
7. Service Termination: Upon completion of the swap, Yanda validators verify the legitimacy of CryptoYou’s operations and compliance with the protocol’s logic.
8. Funds Transfer: The swapped tokens are transferred back to the user’s web3 wallet.

The Benefits of CryptoYou and Yanda Collaboration

CryptoYou leverages the Yanda protocol to deliver numerous benefits and added value to users:

– Deep Liquidity: By accessing the liquidity of centralized exchanges, CryptoYou can offer deep liquidity, ensuring efficient and seamless cross-chain swaps.

– Low Fees: The collaboration between CryptoYou and Yanda allows for reduced fees, making the swapping process more cost-effective for users.

– Security and Transparency: The Yanda protocol’s validators monitor and verify off-chain logic and transactions, offering a more secure environment than traditional bridges.

– Self-Custody of Funds: Users retain custody of their funds, eliminating the need to trust centralized exchanges with their assets.

– Access to New Token Pairs: CryptoYou’s integration with the Yanda protocol enables the platform to support token pairs not available on traditional swappers, broadening users’ trading opportunities.

Future Developments and Expansion

CryptoYou and the Yanda protocol have ambitious plans for the future, including:

• Integrating more networks such as Polygon and Binance Smart Chain (BSC), broadening the range of token pairs available to users
• Supporting more wallets via WalletConnect v2, enhancing accessibility and convenience for users
• Exploring new use cases that can thrive on the Yanda protocol, such as network bridges, hybrid market pairs, on/off-ramp solutions, and stablecoin minting

Conclusion

The collaboration between CryptoYou and the Yanda protocol has revolutionized the DeFi landscape, offering users unparalleled benefits like low fees, deep liquidity, and enhanced security. This in-depth technical exploration of how CryptoYou and Yanda work together demonstrates the power of their partnership and the cutting-edge technology behind it.

By harnessing the best of both CeFi and DeFi worlds, CryptoYou and the Yanda protocol are ushering in a new era of financial services that prioritize user autonomy and transparency. By making trading via CEXs more transparent and accessible through web3 wallets, the partnership empowers users to retain custody of their assets while benefiting from the deep liquidity offered by centralized platforms.

As CryptoYou and the Yanda protocol continue to develop and expand their ecosystem, they will open up new opportunities for users and foster increased innovation within the DeFi space. By continually refining and improving their services, CryptoYou and the Yanda protocol are well-positioned to shape the future of digital asset trading and establish themselves as leaders in the rapidly evolving world of decentralized finance.