Nick | Backpack 🎒

@MadLads @Backpack @Backpack_CN

Nothing here is Financial Advice

[Nick | Backpack 🎒 @nt_ape]

This is a huge deal. Tell me if any large financial institution provides daily POR?

Even the most trusted and "secure" banks does not provide such transparency.

We are talking about no gaps, no asset liability mismatch and full transparency.

If the world had this before, prior banking crisis would have been avoided even.

Bitcoin was born pretty much because of the lack of transparency from traditional financial institutions. Bitcoin brought us awareness and Backpack delivers the vision.

[Armani Ferrante @armaniferrante]

Proof of Reserves

Today, we stand on the shoulders of the exchanges that came before us. Over a decade of pioneering. Over a decade of booms. Over a decade of busts. Over a decade of hard lessons learned. And if there's one lesson to learn, it's that the future of finance is onchain.

Today, we inch forward with our own contribution, committing to a daily proof of reserves, and we're not stopping there.

When we set out to build Backpack Exchange, we asked whether we wanted to build a CEX or a DEX, and we concluded, why not both? TradFi isn't going anywhere, and over time it'll evolve to become more and more like crypto. The centralized exchanges of the future will remain compliant--but they will be verifiable, distributed, and look and feel much like today's decentralized exchanges. In the end, it'll be hard to tell the difference. The CEX's will be compliant. The DEX's will be censorship resistant. Both will be onchain.

The next step for Backpack's ongoing journey to trust minimize: state integrity attestations.

(Honestly, I'm reluctant to even say this, because words and technical definitions have become so distorted this cycle as to almost become meaningless. Nevertheless, it's pretty interesting and gives insight into where we are and where we're going, so here we go.)

Few understand that Backpack is already onchain. The entire exchange ledger itself is built off a global linear log of authenticated transactions played over a deterministic state machine. Every order placement, every cancel, every liquidation, every deposit, every withdrawal--everything--is a signed transaction. Through one lens, classical state machine replication with some crypto on top. Through another lens, a permissioned blockchain of sorts.

Proof of reserves takes the large and critical step of anchoring our ledger to public chains, but how do you know that ledger was computed correctly? You need to not only see the code to ensure there's no foul play, but you also need to replay every transaction--as is done with today's blockchains--or encode that state transition function into a zero knowledge circuit--as is done with the bleeding edge of ZK VMs. In either case, the outcome is the same: verifiability of the ledger.

Today, Backpack is fully verifiable. Every state transition from the beginning of time up until now can be executed and matched against our publicly attested to ledger. Pair this ledger with a proof of reserves, and you have full end to end anchoring of a centralized exchange to a public blockchain. To start, we're committing to daily proofs, but in practice, we run our balance reconciliation in real time and generate the proofs every 10 minutes. To be honest, I expect some challenges with generating proofs too frequently due to some upcoming fiat-related regulatory requirements, so we'll stick with once a day for now. But as we get more and more comfortable with the system, we'll aim to bring proof times down from daily to, I hope, closer and closer to real time.

There's just one problem with all of this: we don't publish the code or the data publicly, and so although much of the hard technical work of achieving verifiability is done, in practice, it's still very much in the category of "trust me bro". (To be fair to ourselves, almost everything in crypto is still very much in the category of trust me bro, but we do our best to be sincere about our limitations.) In any case, this is the next critical step we must take to empower our proof of reserves with end to end guarantees over user balances on the platform.

Slowly but surely, we put one foot in front of the other.

This was an important step for us, but there are many, many--many--more areas to bring genuine trust minimization to every level of the centralized exchange stack. Custodians, margin risk management, self custody--all topics warranting their own deep dive, their own product, and their own announcement. There is much work to reimagine and rebuild the centralized exchange from the ground up, and, as corny and uncreative as it is to say. This is just the beginning.

🧱

---------------------

PS. Some interesting details:

- The proof covers all "physical" balances on the exchange. I like saying physical because it implies you can touch the coins--as opposed to synthetic concepts that can't be externally enforced by an L1 like open interest, unrealized pnl, or open borrows. In the nomenclature of Backpack's system, this means all funds in available balances (i.e. tokens sitting in your portfolio), open orders (i.e. tokens sitting in the order book), and unborrowed lends (i.e. tokens that have been lent but not borrowed) are encapsulated by the Proof of Reserves. These last two points are extremely subtle but extremely important, so I'll touch on them next.

- Surprisingly, some exchanges allow trading with a TradFi concept called "net settlement", where one can provide liquidity with more than the assets they have on the platform, e.g. because they're a trusted market participant staying neutral. On Backpack, all balances in the order book are physical. I.e. they map directly to balances sitting in our wallets on chain, and because the balances in the order book are physical, it ensures the liquidity you see is always real and anchored by the public chain via the PoR. (There are also other interesting ways to test whether liquidity is real, e.g., build a taker bot and check your fill rate. Such an experiment has frequently been used by crypto HFTs to test the integrity of various exchange order books over the years.)

- In Backpack or any borrow-lend system for that matter, one could deposit USD and use that as collateral to borrow and withdraw BTC. This creates a legitimate hole in the system where that hole is fully and over 100% collateralized by the assets backing the borrow. Nevertheless it is a hole. The lent asset is *correctly* no longer sitting in the wallet if the borrower withdraws. As a result, a comprehensive analysis of reserves ought to be paired with a robust margin risk analysis. One must answer the question: does the collateral hold up and can it be liquidated in a worst case market movement? Naturally, risk management is just as important as custody, but that's a conversation for another day.

- Because Perpetual Futures on Backpack realize PnL in real time, marking to market positions and exchanging physical cash between all winners and losers continuously, it means that all open PnL in positions is accounted for in the proof of reserves, a nice win that falls out of our risk engine design for free.

- Ironically, fiat sitting in banks, which the rest of the non-crypto native world views as more secure, throws a wrench into Proof of Reserves. As implied above, there are some regulatory requirements in some parts of the world where stablecoins aren't allowed. In these regions, we'll be forced to use good old cash in the bank. However, our system knows nothing other than tokens. To address this, we'll need to mint a "deposit token" (like a stablecoin but representing bank deposits).  Currently, we use 100% stable coins, but I suspect deposit tokens will become more of a thing over time, as we recently saw JP Morgan team up with Coinbase to pioneer this concept.

- If you haven't already, see our Proof of Reserves page. We host one ourselves where you can download and run all the proofs. Both in aggregate across the entire exchange and also inclusion proofs for your specific account. A second page with the same data and proofs is externally hosted and validated by Ottsersec (see the quoted tweet for details and links).

- For completeness, I should mention all the ZK proof code is public for the world to see, clone, and run oneself.

-----------------------

PS. If you think any of this is interesting, we're hiring. DMs are open.

[Solana Legend 🎒💧 @SolanaLegend]

See you guys in a couple of hours.

https://t.co/oKPMtHXuz2

[Ngoc 🎒 @ngbackpack]

❌ Chỉ sở hữu một token mô phỏng giá cổ phiếu

✅ Sở hữu cổ phiếu thật
✅ Nhận cổ tức
✅ Có thể chuyển đổi giữa broker truyền thống và blockchain

Đó là sự khác biệt giữa "tokenized stock" và việc thực sự nắm giữ tài sản cơ sở.

Everything in your Backpack 🎒

[Nick | Backpack 🎒 @nt_ape]

@Backpack Securities and @solana are rewriting the future of finance

[Backpack 🎒 @Backpack]

Are your tokenized stocks giving you the real thing?

On/off-ramp securities between traditional brokers and @solana.

Soon.

[Nick | Backpack 🎒 @nt_ape]

@Backpack @solana On/off-ramp your onchain stocks! Only on Backpack and Solana

[Joe Takayama | Backpack🎒 @TakayamaJoe]

仮想通貨コミュニティはBackpackの株式とBackpack Securitiesにわいきましたが、Armaniが以前語ってくれた成長ストーリーのほんの一部に過ぎません。

これからくる大きな成長期が楽しみです。

[Nick | Backpack 🎒 @nt_ape]

@CryoPalmar @Backpack WAO

[佳瑞Renée (💜,💛) @Renee7eth]

. @Backpack 算是真正把券商和交易所合二为一了 🎒

· 真实股权：DTCC结算 + 纽约州UCC第8条真实证券权益，享有股息自动分红 + 股东投票权（非包装资产）；

· 合规：纽约州法律框架，每笔交易走DTCC，与嘉信、IBKR同等法律保护；

· 加密原生：真实股票 ↔ Solana链上股票一键切换，统一保证金跨股票/加密/永续；

· 丝滑体验：无需重复KYC，一个账户玩美股+加密，全球ETF（含韩欧中）、碎股交易、无需新开户、支持IBKR/嘉信互转。

还有手续费活动，上线后我先冲为敬了！

[Backpack中文 @Backpack_CN]

Backpack证券第一次AMA来了🖤

这次我们邀请到了前CFTC代理主席，同样也是Backpack US 总裁 Mark Wetjen参与!

一起锁定6月4日 周四晚18:00

转发并且在评论区留下对Backpack证券的问题，我们会挑选好的问题在线解答，并且送出福利！

[Nick | Backpack 🎒 @nt_ape]

@Backpack Send the fees to 0!

[Nick | Backpack 🎒 @nt_ape]

Backpack for the people!

[Backpack 🎒 @Backpack]

Real US Stocks. No Fees. Throughout June.

Private beta ongoing. Public next week.

Invite-only: https://t.co/HCyv2HgKs3

[Agugu @guyiguyi_]

一波一波政策收紧的消息袭来！
全世界都在抢着做美股入口
Backpack真有点东西
DTCC登记、真实股权，法律意义上拿在手里，这个合规架构dddd

刷到后第一时间逼问了@Miiiho420
套出来了点内部福利消息！！
后面有股票相关的大撒币活动
具体是什么还不知道，盯一下👀
@Backpack_CN @Backpack @armaniferrante

[Tokens on Solana @tokens]

NEW: @Backpack is rolling out Backpack Securities next week, bringing regulated U.S. stocks and ETFs onchain while enabling transfers between traditional brokerage accounts, wallets, and DeFi applications.

[Saeed @shadddowfax]

Why did @Backpack and @sunrisedefi partner on this?

Simple. We're both building toward the same outcome… crypto isn't a separate thing.
There's just one global market, open 24/7. 👏

And we're bringing that future closer.

This is going to materially accelerate @solana spot markets.

More liquidity. Better price discovery. Many, many more markets to trade.

WE ARE ONE. 🌅

[Nick | Backpack 🎒 @nt_ape]

@shadddowfax @Backpack @sunrisedefi @solana WAO

[Saeed @shadddowfax]

Which major crypto exchanges offer real equities trading:

@binance : No
@Bybit_Official: No
@okx: No
@kucoincom: No
@Backpack: Yes

Move faster on hard things. Congrats @armaniferrante and team.

[Nick | Backpack 🎒 @nt_ape]

Study JY

[JY 🎒 @JYdmnLFG]

这几天交易所集体上美股，但大多数卖的就是个"股票的影子"，懂的都懂，但是我还是会买……因为开美股好难，我想我这种人在币圈还是大多数的。

前几天刷到BP的CEO阿玛尼框框开炮，重拳出击有其他交易所：Backpack上了股票和其他交易所有什么不同？也算是英文版「合规哥」了（哈哈哈哈哈啊哈！！）。但是至少BP 在美国有合法合规基础，正在一州一州拿牌，提供的也是真实股票交易。用户持有的每一股都对应 DTCC 登记的真实股权，享有股息分配权与股东投票权。

具体大家扒中文推的长文吧，各自解析。

[Mad Coach◎🎒 @SolanaCoach]

If you still don't understand why @Backpack has focused on regulations for years, why they've spent a lot of money on regulation, others will understand it for you.

[Nick | Backpack 🎒 @nt_ape]

Your one stop shop. Everything in your Backpack 🎒

[Solana @solana]

For the first time, you can on/off-ramp stocks between traditional brokerage and Solana

[Solana @solana]

For the first time, you can on/off-ramp stocks between traditional brokerage and Solana

[Nick | Backpack 🎒 @nt_ape]

My Quant

[Althea 🎒 @aquiahoramism0]

Me earning another 10k within a week 😎
by buying stocks and trading crypto on @Backpack
show me your portfolio
what should i buy next