Recently, there hasn't been any major trend in the market, so I took some time to carefully review @ Backpack's information. I simply wrote it down as a "research note that I understand" and also compared it with the old ideas of traditional exchanges. I used to use the exchange completely according to the 'traditional method'. Place one spot, one contract, and open a wealth management area next to it, Every time there is a new opportunity, the first thing is not to place an order, but to transfer funds between several accounts first. After a while, I found a very awkward phenomenon: There may seem to be a lot of positions, but the actual amount of money "working" is actually not much. Even more troublesome is that once a contract is opened, the mentality will become very shattered. Sometimes, even though it is profitable on paper, But the floating profit lock cannot be used in the position, I want to make a point, either close the position or borrow money; When I'm losing money, I'm worried that the platform might hit a price spike someday, I directly sold my BTC and SOL as margin. During that time, I started thinking about a question in reverse: If we treat the exchange as an 'asset operating system', What should it look like instead of an 'order interface'? ” Later, while reviewing the information on Backpack, I discovered their design philosophy, Basically, it is broken down along this question: From the aspects of fund efficiency, account structure, and risk control compliance, Try to redo the way money works in the exchange. Below, I will follow this train of thought and summarize my understanding of the core of the Backpack product. 1、 Team starting point: First, think clearly about what problem needs to be solved @The starting point of the Backpack line is actually quite clear: The problem Armani sees is: There is no "deposit and withdrawal portal" in the industry that is as compliant as a bank and as convenient as a user-friendly wallet; But users have become accustomed to the experience of Web2 (simple, unified entrance), At the same time, it also requires Web3's autonomy and transparency (self hosting, on chain verifiability). So their path is: It's not about creating an 'exchange interface' first, Instead, we first use the wallet+account system as the foundation, and then stack the transaction, income, lending, and risk control layer by layer. One sentence understanding: It is more like a 'unified wallet based financial operating system' with an exchange attached to it. 2、 Product Core 1: Efficiency of Fund Utilization (Try not to idle money) My most genuine experience on other CEX platforms before was: Although money lies in many places, most of the time it is lost in thought—— One spot account One contract deposit One financial account Money earns interest here, so it cannot be used as margin over there The design of the backpack is reversed: All assets enter the lending pool by default and earn interest automatically (Auto Lend) No need to specifically transfer money to the 'wealth management area', just lie there and earn. The same amount of money is both a deposit and a source of interest No longer distinguish between "wealth management account" and "trading account", But rather a unified fund pool, with the risk control engine calculated based on overall risk. Profit and loss are automatically settled to USDC every 10 seconds Floating profit is not just about looking good, but will continuously settle into usable balance After settlement, USDC can continue to trade, withdraw, or enter the lending pool to earn interest This pair of high-frequency traders and intraday operators have significantly smoother capital week transfers. Prioritize covering losses through borrowing USDC instead of selling collateral coins On some platforms, if the margin is insufficient, the common solution is to sell your BTC/SOL directly to fill the gap. The logic of Backpack is to prioritize borrowing USDC and try to 'keep' the collateral assets as much as possible. For users who hold coins for a long time and want to use them as margin, this design is relatively friendly. Overall, its goal is to: For the same dollar, try to do three things at the same time: When it comes to margin, earning interest, and taking on profits and losses. 3、 Product Core 2: Account Structure - From "Multiple Accounts" to "One Fund Pool" The structure of traditional exchanges is well-known: spot, contract, leverage, and wealth management are divided into a bunch of small grids, If you want to change the gameplay, first switch inside for half a day. The backpack is: Just one cross warehouse wallet account Spot, futures, lending, and returns are all listed in the same fund pool Multi asset mortgage, unified risk control The advantages are quite straightforward: No need to move bricks back and forth between spot/contract/wealth management All products share a set of liquidity and margin When making strategies, the fund view is complete and there is no need to cut several pages to aggregate the total The official design logic leans more towards a "unified multi asset trading system": One wallet, one asset pool, with different products connected to it. For people who are accustomed to multi strategy and multi variety operations, this structure is closer to professional trading terminals. 4、 Product Core 3: Risk Control+Compliance+Reserve Certification I will only pick a few key points to talk about this, and briefly explain them. 1) Price and Liquidation Protection Backpack has implemented a price protection mechanism on perpetual contracts, which roughly includes: Multi layer tagging logic: Smooth extreme quotes using index price+5-minute weighted average (EWMA) Limit price band/impact band: Limit prices that are too outrageous and reduce the depth of breaking through large orders in an instant Premium interval constraint: to prevent extreme premiums/markups from directly affecting the liquidation trigger point Priority will be given to clearing through the order book, and if there is not enough, Backstop LP will take over The purpose is simple: Try to minimize the situation of 'inexplicable needle clearing people' and make prices and liquidation paths more predictable. 2) Global Compliance Backpack is a multi regional licensed operation: UAE VARA Japan FSA State MTL in the United States European MiFID II and others signify: Not just serving a small region, but covering a larger global economy Custody, risk control, and asset isolation are not only internal standards, but also need to meet regulatory requirements The most direct significance of compliance for ordinary users: In the worst-case scenario, there is a real-world regulatory framework and legal pathway to hold accountable, rather than relying solely on "platform self-awareness". 3) Real time Proof of Reserve (PoR) Many platforms also do reserve proof, but the pace is usually "daily/weekly snapshot". Backpack emphasizes "real-time PoR": Real time synchronization of reserves and user liabilities Refresh every hour Support independent verification and on chain validation Not relying on manual export of reports, but creating a continuously public ledger view This is more of a 'transparency infrastructure': For those who engage in long-term asset allocation, they will add significant points to their subjective sense of security and trust. 5、 Future direction of products: from exchanges to 'unified financial bottom layer' From their publicly available information, there are several routes worth noting separately: Policy based Vault product Manage funds with different combinations of strategies The goal is to achieve predictable returns and controllable risks, rather than blindly investing in financial management Real US stock trading Listing stocks certified by SEC Integrate traditional securities and on chain accounts into a unified entry point prediction market Transforming market expectations into tradable assets For those who enjoy trading events and emotions, there will be a new tool available Overall, what Backpack wants to do is not just be an 'efficient contract exchange', But rather a multi asset financial platform centered around wallets, Financial efficiency, risk control, compliance, and asset transparency are all on the same table. @The core selling point of Backpack is not 'one more exchange', But rather, after putting money in, the efficiency and transparency of the entire lifecycle are one level higher than traditional CEX. Whether it is suitable for personal use or not depends on personal habits and risk preferences, But in terms of product structure and mechanism design, this set of things has its own clear thinking, Unlike many platforms that just rebrand old models and push them again.