Bybit makes DeFi play with Byreal DEX on Solana, withdraws Web3 involvement

The Bybit crypto exchange is set to launch a decentralized exchange (DEX) on the Solana network by the end of this month. The company CEO, Ben Zhou, announced the launch of the new product, Byreal, on X.

According to Zhou, Byreal is a hybrid DeFi protocol that combines centralized exchange (CEX) liquidity with DEX transparency. Thus, it represents an on-chain extension of Bybit itself and is expected to have its global reach.

He said:

“CEX + DEX synergy Byreal isn’t “just another DEX.” It’s combining CEX-grade liquidity with DeFi-native transparency. This is what real hybrid finance looks like. Future Cex + Dex project launch coming soon.”

He added that the product also has a unified liquidity model relying on requesting-for-quote (RFQ) and concentrated liquidity market maker (CLMM) routing. This enables it to achieve speed while ensuring that users have low slippage and swaps are protected from MEV.

Interestingly, the announcement from the Byreal account clarified that only the testnet will launch on June 30. Mainnet is not expected to launch until Q3 of 2025.

Beyond the core features highlighted by Zhou, the DEX will also have a fair launchpad model using Smart Price Ladder and Fairshare Engine as well as curated yield vaults.

Bybit continues product expansion with DEX

Meanwhile, Bybit’s decision to launch a DEX might be partly influenced by the success of perpetual futures DEX Hyperliquid. Although the exchange did not specify whether Byreal will support perps and derivatives trading, the DEX subsector has significantly less competition compared to spot swaps, where the likes of Uniswap, Raydium, Pancakeswap, Aerodrome, Meteora, and Orca already compete for market share.

Hyperliquid accounted for around 80% of all on-chain derivatives trading volume in May, according to Grayscale. The platform has been attracting organic usage with enough liquidity to potentially compete with centralized exchanges such as Binance and Bybit in the derivatives market.

Still, the move shows how Bybit has changed its product focus in the past few months as it recovers from the massive $1.4 billion hack. The exchange recently introduced gold trading on its platform, allowing it to offer gold, forex, and stocks. In May, it started to offer stock trading with USDT.

However, product expansions have also come with the shutdown of other products. For instance, the company discontinued Web3 products such as Cloud Wallet, Keyless Wallet, DEX Pro Swap & Bridge, and NFT marketplace this year.

Nevertheless, Bybit has continued to experience growth. The exchange recently obtained the MiCAR license in Austria, allowing it to operate as a fully compliant crypto exchange in Europe. It also announced that it has surpassed 70 million registered users.

Byreal could give Solana a boost as network adoption continues

Meanwhile, Bybit’s decision to launch Byreal on Solana represents another positive development for the network. Over the past few months, Solana has seen increased adoption from institutions, with the likes of Kraken, Fidelity, r3, and others choosing the network for new products.

Solana enthusiasts believe this is a sign that the future of finance is on the network due to its speed and scalability, an opinion that TradFi stakeholders also seem to support. Franklin Templeton CEO Jenny Johnson recently spotlighted Solana as one of the first institutionally focused blockchains.

The growing institutional adoption will boost Solana, especially as memecoin, once the major activity driver, continues to experience a downturn. Even Byreal acknowledged this in its post, noting that it could bring more users to the Solana ecosystem.

It said:

“Byreal is built to add new users, new assets, and new demand to the ecosystem. More capital. More assets. More velocity — for all.”

Solana’s attractiveness might not be just because of its scalability, as decentralized network applications also record more revenue than other chains. According to Syndica, dApps on Solana have generated more revenue than all other chains combined for eight consecutive months, with 58% of the revenue share in May.

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