Crypto exchange giant Bybit prepares to debut its first decentralized exchange, Byreal, on the Solana blockchain. The new protocol, incubated by Bybit's in-house initiative BB (presumably “Bybit Build” or “Bybit Blockchain”), will go live by the end of the month, introducing a unique architecture that combines centralized liquidity models with decentralized infrastructure.
The announcement was made by Bybit CEO Ben Zhou via social media on June 14. “Announcing Byreal - our first on-chain DEX incubated by BB, will be LIVE by end of the month. Starting from scratch and now born on Solana,” Zhou posted, adding that the project is “what real hybrid finance looks like.”
Zhou’s post triggered a wave of speculation across the crypto space, especially given the growing trend of centralized exchanges launching or integrating decentralized components in response to shifting regulatory landscapes, user demand for transparency, and the collapse of trust in custodial-only platforms.
What sets Byreal apart from the ever-growing list of DEXs is its hybrid liquidity architecture, which combines two distinct mechanisms: Request for Quote (RFQ) and Concentrated Liquidity Market Making (CLMM). According to Zhou, this enables Byreal to offer:
- Unified liquidity across a range of assets and trading modes
- MEV-protected swaps - designed to guard users from Miner Extractable Value attacks
- Low-slippage execution for both retail and institutional traders
- High-speed transactions made possible by Solana’s sub-second finality and throughput
The exchange is currently preparing for a beta testing phase, which is expected to go live before the end of June. Insiders suggest it may be a closed beta initially, targeting professional traders and liquidity providers, before expanding to public access.
RFQ + CLMM: A Hybrid Engine
Byreal’s backbone is a fusion of RFQ, typically used in over-the-counter (OTC) or institutional trading, and CLMM, made famous by Uniswap v3 and other modern DEXs.
- RFQ allows market makers to provide dynamic price quotes for specific trades, increasing execution efficiency for large orders.
- CLMM enables liquidity providers to concentrate capital within specific price ranges, optimizing capital efficiency and deepening liquidity in zones of high demand.
This dual-model aims to deliver CEX-like price execution while retaining DeFi-native transparency and permissionless access.
Why Solana?
The decision to build on Solana rather than Ethereum or a Layer-2 solution is significant. Solana has become a favored base for high-performance DeFi protocols thanks to:
- Low fees and fast finality (typically 400–600ms block times)
- A growing ecosystem of DeFi users and liquidity providers
- Native parallel transaction execution architecture that supports scalability
Bybit's choice reflects a broader trend of developers increasingly adopting Solana for DeFi 2.0 infrastructure, particularly projects that require high throughput and low latency.
Notably, Solana is also home to some of the fastest-growing memecoins, NFT projects, and social-Fi applications, suggesting that Byreal could tap into a ready-made, high-volume user base.
The Strategic Pivot Toward On-Chain Finance
Byreal isn’t just another DeFi project - it’s a strategic move by Bybit to extend its influence into on-chain finance, amid tightening regulatory oversight of centralized platforms worldwide.
The hybrid CEX–DEX model allows Bybit to maintain an edge in execution and compliance while offloading certain operations on-chain to improve transparency and trust. This could appeal to both:
- Retail traders wary of custody risks after collapses like FTX
- Institutional clients seeking deep liquidity and trade settlement clarity
Zhou’s statement that this is “just the start” of what the exchange plans to launch hints at a broader suite of hybrid financial products, potentially including on-chain derivatives, tokenized order books, or even decentralized KYC systems.
A Critical Moment After a $1.4 Billion Hack
The Byreal launch also arrives in the shadow of one of the largest security breaches in crypto history. Earlier this year, Bybit suffered a catastrophic exploit that resulted in the loss of approximately $1.4 billion in Ethereum. While the exchange managed to contain user-facing fallout and reinforce reserves, on-chain analysis in late May revealed that at least half of the stolen funds have become untraceable.
In this context, the Byreal initiative could be seen as a reputation-rebuilding move, showcasing a commitment to on-chain integrity and security best practices. The new protocol's emphasis on MEV protection and transparency-first design might help win back the confidence of users and regulators alike.
Bybit’s foray into DeFi mirrors a broader movement among centralized players to diversify their product stacks through decentralized layers:
- Coinbase launched Base, an Ethereum Layer-2 network, in 2023, with deep integration into its Web3 wallet ecosystem.
- Binance has BNB Chain, with several core applications serving DeFi and NFTs.
- OKX introduced X1, its Layer-2 solution powered by Polygon CDK, focusing on on-chain trading, staking, and governance.
However, Byreal is unique in positioning itself not just as a DEX but as a hybrid liquidity protocol - aiming to recreate the precision and capital efficiency of centralized order books on decentralized rails.
What to Expect Post-Launch
Here’s what traders and developers can anticipate in the coming months:
- Beta Testing Phase (June 2025): Selected users will test Byreal’s execution engine, swap interface, and liquidity models.
- Public Launch: If the beta proves stable, a wider release will follow, likely including liquidity mining, governance tokens, or staking incentives.
- Protocol Expansion: Zhou’s mention of an upcoming “CEX+DEX product launch” points to further features - potentially on-chain leverage, structured products, or custody tooling.
If successful, Byreal could become a blueprint for next-generation trading platforms that straddle centralized scale and decentralized ethos.
Bybit’s move to build and launch Byreal on Solana underscores a clear industry trajectory: the future of trading is hybrid. As crypto markets mature and regulatory pressure mounts, players that can combine speed, transparency, and efficiency will be best positioned to lead the next wave of adoption.
Byreal may only be the first step in Bybit’s broader DeFi roadmap, but it’s a significant one. Its performance - both technical and reputational - will be closely watched not just by users, but by the entire crypto ecosystem navigating the CEX–DEX convergence.