Technical White Paper

V1.0

Content 1. Introduction ........................................................................................................... 1

1.1 Background .................................................................................................. 1

1.2 Business ....................................................................................................... 2

1.3 Competitive Strengths .................................................................................. 4

2. Technology ............................................................................................................ 6

2.1 System Architecture ..................................................................................... 6

2.2 Modules Description .................................................................................... 8

3. Token Economics ................................................................................................. 19

3.1 The Utility of QBI ...................................................................................... 19

3.2 Distribution of QBI .................................................................................... 19

4. Development Schedule ......................................................................................... 22

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1. Introduction

1.1 Background

Following the substantial development of blockchain industry, cryptocurrencies have

been widely recognized as an asset class since 2013. The total market value of

cryptocurrency has scaled up to 130.49 billion dollars by the end of 2018, based on the

statistics published by CoinMarketCap, a creditable data source specializing on

cryptocurrency market.

The exuberance of coin market cannot do without the fast development of trading

infrastructure. Since the establishment of first cryptocurrency exchange in 2010, there

has already been over 243 token exchanges leaving their records in CoinMarketCap,

where cryptocurrencies amounted to trillions of dollars are daily circulated.

Meanwhile, the competitive dynamics of cryptocurrency exchanges also derives the

problems disturbing market participants which is as the following:

l Trading price of the same coin usually varies among different cryptocurrency

exchanges. For searching the best execution price, investors have to spend a

large amount of time on pairwise comparison mechanically among exchanges.

l For feasibility of best trade execution, investors have to sign up respectively

for multiple exchanges, which means they have to go through tedious and

similar KYC processes repetitively and endure ineffective usage of fund as

they must fulfill the minimal deposit requirements set by exchanges.

l Mainstream cryptocurrency exchanges positioned their markets on individual

traders considering early features of investor constitutions in coin market.

However, increasing number of institutional investors have entered into this

arena due to the promising future of blockchain and cryptocurrency. Beyond

common demands shared by individuals, institutional participants also expect

exchanges to supply advanced trading tools and professional fund custodian.

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Clearly, the existing exchanges fail to satisfy their new demands.

l Mainstream cryptocurrency exchanges are functioning as trading platforms

but not investment platforms of cryptocurrency. They dedicate themselves on

serving business related to active investment, while in the meantime, they

neglect the demand for passive investment on cryptocurrency, which leads to

most individuals with limited trading skills only choose to independently

manage their holdings but not hire a professional crypto-asset management

team.

l Mainstream cryptocurrency exchanges just provide coins’ market information

including price, volume and market depth, only a few of them provide analysis

report with regard to the coin and its blockchain project behind. Since narrow

range of information is available to ordinary investors, hence they have to

make their investment decision under great uncertainty. Under such

circumstance, investors are naturally eager for a platform on where they can

share viewpoints of cryptocurrency markets.

The advent of cryptocurrency exchanges in the last 9 years and the inconvenience they

leave behind have provided us with the opportunity to integrate our system with an

increasing number of exchanges into one automatically functioning, computerized

platform that serve better trading experience.

1.2 Business

QuantBroker is set up with the mission of providing the best cryptocurrency investment

experience for its customers via constantly building a user-friendly, professional, and

effective investment circumstance. For realization of its mission, QuantBroker is

positioned as an integrated platform for cryptocurrency investment by functioning as

an automated electronic broker which specialized in routing orders and executing and

processing trades in cryptocurrency and its derivatives(e.g. Contracts for Difference) in

the mainstream exchanges all round the world, as a medium bridging individual and

institutional investors, and a social media designed for sharing ideas between investors,

traders and blockchain developers.

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Based on the corporate strategy, QuantBroker plans to contain key components as the

following:

l PrimeBroker: an automated electronic brokerage system integrating market

information from mainstream cryptocurrency exchanges all round the world.

l CoinStar+: a B2C platform for introducing and promoting business of crypto-

asset management.

l QB Wallet: a cryptocurrency wallet designed for safe keeping of users’ crypto-

wealth.

l CfD Market: a platform for trading Contracts for Differences on

cryptocurrency, meeting the customers’ demand for hedging or speculating.

l CoinPlanet: a social media designed for sharing ideas between investors,

traders and blockchain developers.

Figure 1. Business Model of QuantBroker

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1.3 Competitive Strengths

Seamless trading experience in one account. For buying and selling cryptocurrencies

in mainstream exchanges all around the world, customers only need to register one

account in QuantBroker. The smart frontend and telecommunications network enable

QuantBroker to provide its customers with customized capabilities to monitor multiple

coins in various markets instantly and simultaneously and to execute trades

electronically in these markets. Moreover, customers can smoothly adjust their degrees

of trading leverage through coin financing service from QuantBroker.

Lower costs and higher revenue. After registering account in QuantBroker, customers

can gather all idle coin balances being spread around exchanges beforehand into one

account. They can share the optimal commission without satisfying the requirement set

by respective single exchange. Moreover, customers can earn extra revenue by lending

their idle coin balances in support of QuantBroker’s coin financing business. When

trading in an individual exchange (e.g. Binance, Huobi, etc.), customers’ orders are just

traded against other customers of the same exchange. Taking advantage of

QuantBroker’s proprietary technology, the inside smart router continuously searches

and reroutes customers’ orders to best available prices in an automatical manner that

minimizes execution costs.

User-friendly and professional trading tools. QuantBroker provide a series of

sophisticated order algorithms to make customers’ trading action customizable. Besides,

QuantBroker offer institutional customers state-of-art tools, which include advanced

market and portfolio analysis toolkit, risk monitoring and management system and API

with unity pattern, etc.

Cryptocurrency instruments covering full return-risk spectrum. For customers with

low return-risk preference, they can choose to lend idle coin balances or subscribe

cryptocurrency fund through the CoinStar+ module. For customers with intermediate

return-risk preference, they can choose to trade spot cryptocurrency in the PrimeBroker

module. For customers with high return-risk preference, they can trade contract for

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differences on cryptocurrency, a derivative instrument anchoring cryptocurrency’s

price, through the CfD Market module.

Social media for on demand communication and learning. For customers who would

to communicate and learn to stay ahead in the market, QuantBroker set up CoinPlanet

module to provide a platform for sharing ideas on cryptocurrency and blockchain.

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2. Technology

2.1 System Architecture

QuantBroker’s system deploys a loosely-coupled architecture, separating technological

layer, AI layer, application layer and trading tool layer. Such architecture ensure

QuantBroker’s system features of being efficient, robust and scalable.

Figure 2.1. System Architecture of QuantBroker

Technological layer provides underlying support for the operation of QuantBroker. This

layer mainly includes operational backend system, wallet management system, security

system and trade management system. This layer will be contained public chain and

side chain. Daily operational records will be transmitted to the artificial intelligence

layer, this lay deploys cutting-edge machine learning algorithms to conduct risk

analysis, price prediction, customer assessment, account classification and trading

heuristics. Backing up by technological layer and artificial intelligence layer, product

layer directly offers service to customers. Customers can manage their account, analyze

market, place orders, execute sophisticated strategies, collect latest analysts’ report,

B A

A A

C

B

B

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control trading risks, subscribe news, finance coin, develop quantitative trading model,

and enjoy other customized service.

For users’ convenience, QuantBroker will various types of interfaces covering

mainstream digital devices, which include web-based trading client, android native

client, iOS native client, PC native native client, and websocket API. Since

QuantBroker has integrated market information from mainstream exchanges into one

single client, customers do not need separately install a bundle of clients provided by

these exchanges, while save their devices’ storage space to a large extend.

Figure 2.2. QuantBroker Web Client

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Figure 2.3. QuantBroker iOS and Android Client

2.2 Modules Description

As the introduction part mentioned, QuantBroker system mainly contained the five

modules, which are PrimeBroker, CoinStar+, QB, CfD Market, CoinPlanet.

(a). PrimeBroker

PrimeBroker is the core module of QuantBroker system with the role of automated

electronic brokerage.

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Figure 2.4 Architecture of PrimeBroker Module

PrimeBroker is constituted by the below submodule:

l Smart Trading Interface: its function is to realizing the interaction between

customers and PrimeBroker and demonstrating the integrated market

information.

l InfluxDB: its function is to storing historical market data from the mainstream

exchanges.

l Trade Server: its function is to receiving the trades order from customers and

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replying feedbacks of processing to customers.

l Smart Router: its function is to executing order algorithms according to

customers’ trade requests.

l Data Feed: its function is to process real-time market information from the

mainstream exchanges.

l Clearing System: its function is to clearing the executed trades and updating

customers’ holdings and account balances.

l Central Gateway: its function is to establishing network connections to the

mainstream exchanges and forwarding customers’ trade orders.

PrimeBroker receives market data and trade information from mainstream exchanges

through its submodule central gateway, and then disseminate instructions to the other

submodules to process. System’s robustness and efficiency is evidently enhanced under

the principle of separation of market data and trade data.

Considering users’ habits and scale of data inflow, PrimeBroker furtherly classifies

market data into real-time type and historical type. Once it is requested, historical data

is stored into the InfluxDB with a strong write-read capability for satisfying customers’

sustainable needs. Real-time data is transmitted through submodule data feed which

colinear framework, and then processed by the smart frontend for achievement of

integration of market information, which has a feature of low latency.

Trade requests from customers is sent to submodule trade server. After passing

feasibility assessment conducted by submodule clearing system, executable trade

requests are forwarded to submodule smart router.

PrimeBroker supports regular types of trade orders, which are limit order and market

order. Customers can authorize PrimeBroker to select a suitable exchange or specify an

exchange in which they would like to trade.

Additionally, PrimeBroker also supports four types of smart orders, including:

l All-or-None Best Execution Price: Customers’ orders will be routed to single

exchange that offer the best execution price and be executed in all-or-none

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style, which means the orders will be entirely held once available size of the

best execution price fail to exceed the size of orders.

l All-or-None Best Volume Weighted Execution Price: Customers’ orders will

be routed to multiple exchanges in a manner that achieving the best volume

weighted best execution price and be executed in all-or-none style.

l Immediate-or-Cancel Best Market Price: Customers’ orders will be

continuously routed to single exchange that offer the best execution price and

be executed in immediate-or-cancel style, which means if partial orders fail to

be executed then these orders will be cancelled and be rerouted to the available

best execution price.

l Immediate-or-Cancel Best Volume Weighted Market Price: Customers’ orders

will be continuously routed to multiple exchanges simultaneously for

achieving the best volume weighted best execution price and be executed in

immediate-or-cancel style.

The main distinction between the former two types of smart orders and the latter two is

whether the orders are executed in batches. The former two types are not allowed to be

executed in batches, which is suitable for the traders who would like to react to the

market change rapidly and helps to improve the performance of short-term trading

strategies. The latter two are allowed to be executed in batches, which is suitable for

the traders who would like to hide themselves and avoid to induce significant market

impact. The main logic of the smart orders mentioned above can be referenced from

the figure 2.5 and 2.6.

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Figure 2.5 Execution Logic of All-or-None Smart Orders

Figure 2.6 Execution Logic for Immediate-or-Cancel Smart Orders

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122

2 2

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Smart trading interface is to enable customers to conveniently monitor multiple coins

in multiple exchanges simultaneously and to seamlessly switch among them.

Moreover, the interface provides functions of information integration, which

integrates market depths, orderbooks and trading history. Customers can freely choose

the combination of coins and exchanges that he would to integrate, so that he can

overlook the new developments in cryptocurrency markets and make corresponding

predictions in his customized way.

For customers’ direct and accurate estimation of the execution cost of orders in the

waiting list, execution cost estimator is offered. Customer can estimate the cost after he

input the volume he plans to trade.

Figure 2.7 Smart Trading Frontend

Figure 2.8 Orderbook Integration and Trading History Integration

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Figure 2.9 Market Depth Integration

Figure 2.10 Execution Cost Estimator

For satisfying quantitative traders’ need to access market data, confirm account

information and place order electronically and automatically, QuantBroker provides

self-designed application program interface (API). Currently QuantBroker supports

Rest API and Websocket API, and plan to support FIX API and Binary API in the future.

Return data from QuantBroker API is formatted as JSON which has good readability.

QuantBroker API can liberate customers from spending a great amount of time and

other resources on redeveloping gateway to mainstream exchanges with distinct sets of

request rules and return formats.

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QuantBroker supports Binance, Huobi, OKEx and the other 7 mainstream exchanges.

According to the statistics conducted by CoinMarketCap, these exchanges account for

30% of trading volume of the whole cryptocurrency market, covering the vast majority

of traders. Customers can buy and sell mainstream coin pairs based by USDT, BTC,

ETH and USD, more coin pairs will be included into QuantBroker in the new future.

Figure 2.11 Exchanges Covered by QuantBroker

BTC ETH EOS

USDT LTC BTH

Figure 2.12 Coins Supported by QuantBroker

Core components of module prime broker is coded by C++ with strong robustness and

high efficiency. Concurrent framework with high capacity allows more than 10000

users to trade on QuantBroker at the same time. Order processing speed of each

partition is 50000 orders/sec and the overall processing speed can be boosted to the

level of millions of orders per second when these partitions are clustered.

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(2) CoinStar+

CoinStar+ is a platform for crypto asset management linking experienced and

professional trading teams and individuals with a considerable number of

cryptocurrency who are eager for reasonable wealth increase. CoinStar+ consists of the

following two modules:

l Product Showcase: A showcase for customers to choose the products suitable

for their crypto asset management demand and risk preference. Qualified

trading teams can present their trading philosophy and historical performance

via this submodule.

Figure 2.13 CoinStar+

l Cryptocurrency Custodian: When customers deposit their cryptocurrency in

CoinStar+ from use of management, their crypto properties will be held and

safeguarded in the cryptocurrency custodian submodule. Management teams’

operation will be in the monitor of QuantBroker’s risk management team, they

are only authorized in a manner that are pre-agreed before signing the

management contract. Moreover, QuantBroker can also provide a range of

services including product accounting and transfer agency services through

cryptocurrency custodian submodule.

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(3) QB Wallet

In QB Wallet, customers can safely keep their cryptocurrency and smoothly transfer

their holding to the trading account or asset or deposit in the crypto asset management

product. In the near future, customers can enjoy the finance services provided by QB

Wallet, which means that they can borrow or lend cryptocurrency through this module.

(4) CfD Market

CfD (Contracts for Differences), is a tradable contract between clients and QuantBroker,

who are exchanging the difference in the current value of a cryptocurrency and its value

at the contract’s end. Since CfD is margin traded, hence customers can higher their

leverage to maximize their earnings from the prediction of cryptocurrency’s future

trend. QuantBroker forecasts that this product have a promising market prospect given

that both the need of hedging and speculation can be fulfilled with it. Customers of

QuantBroker can trade CfD contracts in the CfD market module. This module main the

four submodules below:

l Contract Setting: this submodule is used by the operators to set contract details

including underlying cryptocurrency, trading fees, margin rate, etc.

l Order Matching: this submodule matches orders from customers automatically,

which effectively decrease the risk exposure of the broker.

l Risk Management: this submodule is designed for operators’ need of real-time

monitoring the CfD market. It will automatically alert the operators when it is

triggerred by specific conditions and propose advice with regard to reserve and

hedging.

(5) CoinPlanet

CoinPlanet is a social media platform for users’ demand of learning, communicating

and sharing ideas of cryptocurrency investment skills and latest development of

blockchain industry.

This module has the following submodules:

l Investor Education: The operation team of QuantBroker publishes contents of

basic knowledge of trading, principles of blockchain and new trends in

cryptocurrency through this submodule.

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l Column: Every customer have an opportunity of becoming a QuantBroker

columnist. Customers can share their views on the market in the form of

column through this submodule, by which they can earn likes, commentaries,

forwarding and rewards from their readers.

l Micro Blog: Customers can publish micro blogs like twitter through this

submodule.

l Danmaku: Danmaku is a Japanese term for "barrage", as in a barrage of bullets.

This term is also used to refer to comments which are overlaid directly onto

the video, synced to a specific playback time. Borrowing this idea,

QuantBroker provide a function which allows customer input their comments

on the cryptocurrency market, their comments will be shown on the Kline

district as danmaku.

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3. Token Economics

3.1 The Utility of QBI

QBI is the utility token of the whole QuantBroker community. Users can use QBI to

pay for any services provided by QuantBroker, including but not limited to CoinStar+

(fund mall), supermarket of strategies, transaction fees, social networking, etc. QBI will

originally run natively on the Ethereum blockchain with ERC 20. After main-net launch

of QBI chain, a public blockchain developed by QuantBroker, QBI will be transferred

to that chain as its utility token.

Figure 3.1 Utilities of QBI

3.2 Distribution of QBI

QBI with a strict limit of 800 million will be issued and allocated as follows:

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Figure 3.2 Allocation of QBI

10 million QBI will be supplied in first turn sale and 3 million QBI will be supplied in

second turn. These portions of QBI will be circulated immediately, and another 165

million QBI will be released according the market liquidity demand in the first year.

240 million QBI will be released in the second year. Annual increased circulating

amount of QBI in the third and fourth year will be 130 million. The rest 120 million

QBI will be reserved by the QuantBroker Ecosystem Foundation for reserves and

contingency, some of which may be circulated when necessary.

1.250% 0.375%

12.500%

15.000%

15.875%

7.000%8.000%

25.000%

15.000%

QBI Token Distribution

First Turn

Second Turn

Marketing

Operation and R&D

Founding Team

Angel Investor and Advisor

Partners

Ecosystem foundation

Reserves and contingencyfoundation

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Figure 3.3 Circulating Supply of QBI

0

100000000

200000000

300000000

400000000

500000000

600000000

700000000

800000000

900000000

Circulating Supply

First Turn Second Turn

Marketing Operation and R&D

Founding Team Angel Investor and Advisor

Partners Ecosystem foundation

Reserves and contingency foundation

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4. Development Schedule

Development of QuantBroker can be divided into two phases. In phase I, QuantBroker

will focus on developing centralized cryptocurrency broker, which is expected to be

completed by the end of 2019. In phase II, QuantBroker will focus on developing a

public chain, QBI chain, for backing up expending application contexts of QuantBroker,

and finally evolve into decentralized autonomous organization. This phase will be

expected to be completed by the end of 2023.

Figure 4.1 Schedule of QuantBroker Development

PrimeBroker

QB Wallet

CoinStar+

CfD Market

CoinPlanet

QBI Chain

2019.04.01 2019.04.15 2019.05.15 2019.07.15 2019.12.30 2023.12.30